We are glad to receive some warm feedback. It is a good feeling to have communication in both sides.
The market has also spoken and we are listening carefully to what he wants to tell us. As we said in the last post: “If, however, we do rise a bit up from the current level and then go down to slightly below 0.02350, make sure not to turn bearish. If even the temptation is strong.”. We hope after this last drop to 0.02340 none of our readers turned too much bearish. Because the decline down looks complete. There could however be one more minor drop to 0.02320. That will definately scare away some more bulls and will lead some more bears into the trap.
But let us take a look on a bigger picture again:
The Flat structure we discussed yesterday looks complete now. We have clear 3 waves down: “W”, then corrective pattern up: “X” which took us almost back to the origination of the “W” and then very nice 5 waves down, where the wave 3 has the most classic Fibonacci ratio of the wave 1 ->1.618. For the wave 5 the perfect bottom would come at 0.02320, because then it would be 100 % of the wave 1, but one can’t demand from the market to be all the time perfect. Besides, we see a clear divergence between the price decline (we made the new low) and the RSI, which didn’t make it. It’s also additional signature of the wave 5.
We are looking now for a 5 wave advance from around the current level. There are also some othe metrics we are watching at the moment to confirm the trend reversal. But we will discuss them in the next post. Because the structure (pattern) is the most important part in the Elliott Waves analysis.
As before, our call for an advance is valid as long as the price stays above 0.02040. If that level is broken, we will have to reconsider the current count.
Take care and as always, plan your trade, trade you plan.
The next update will be published on Saturday.