Per the daily price action, the move off recent all-time highs appears corrective. The RSI is showing a bullish price divergence against the 107,720 print low, which may mark an (A) wave base at an intermediate degree.
If that low holds, a counter-trend bounce could rally the market back toward the .618 retracement near the 117,929 level to potentially mark the crest of the answering (B) wave.
The prospective target for wave (C) of primary 4 rests just beneath the 50% retracement of the entire advance from the 74,434 intermediate (4) wave base at the noted bearish Head and Shoulder price target of 99,398.
The most bearish prospect posits that the four-year cycle top is already in place at the 124,517 peak.
Downside Price Target:
As long as price action remains below the head and shoulder neckline, its downside price target will remain firm. The only way the 99,398 target gets taken off the table is if the market makes a fresh all-time high.
Should an imminent rally sustain daily closes above the .618 retracement level at 117,929, the likelihood of fresh new highs increases substantially.
NOTE: In contrast to longer timeframes, Elliott Wave counts at smaller degrees of trend are ambiguous at best, and regularly subject to change along with the price action.
If that low holds, a counter-trend bounce could rally the market back toward the .618 retracement near the 117,929 level to potentially mark the crest of the answering (B) wave.
The prospective target for wave (C) of primary 4 rests just beneath the 50% retracement of the entire advance from the 74,434 intermediate (4) wave base at the noted bearish Head and Shoulder price target of 99,398.
The most bearish prospect posits that the four-year cycle top is already in place at the 124,517 peak.
Downside Price Target:
As long as price action remains below the head and shoulder neckline, its downside price target will remain firm. The only way the 99,398 target gets taken off the table is if the market makes a fresh all-time high.
Should an imminent rally sustain daily closes above the .618 retracement level at 117,929, the likelihood of fresh new highs increases substantially.
NOTE: In contrast to longer timeframes, Elliott Wave counts at smaller degrees of trend are ambiguous at best, and regularly subject to change along with the price action.
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Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.