In a follow up to this morning’s post, I want to discuss the potential here over the coming weeks.
Those three structures discussed each provide separate targets. Furthermore, if I am correct about a major low being put in, we would expect a powerful impulse wave coming up and out of that low. I believe minor (green) 1 is done, and green 2 is finishing today.
If I am right, we should be entering minor (green) 3. That itself will be a 5-wave impulse (the 5 blue waves labelled below). That requires 3 peaks. And it’s possible that the three targets generated by the 3 structures is where each wave will head toward.
So, it’s possible for minute (blue) 1 to be especially big, satisfying the target for the inverse head and shoulders (lowest orange box), followed by minute (blue) 3 reaching the target for the bullish wedge (middle orange box), followed by minute (blue) 5 heading to (or through) the bull flag rail (upper orange box).
I’m sorry to have to be like this, but until these structures fail, I have to remain open to better than expected outcomes.
The only worse-case scenario I can come up with for the moment is a variation of the bullish wedge that allows for one more lower low.
I have been looking at it as an ending diagonal, with all 5-waves complete, like this:
It is also possible that it is this:
But even in this case, I would continue to be looking to enter long, as this should still be a low of very great significance.
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