Good morning, traders, and Merry Christmas Eve. has been offering itself as a great present this past week and it looks like we’ve got some more upward momentum coming our way. I’ve got multiple things noted on these two charts, so take some time to understand it all.
The 4H chart gives us the bigger picture. I have the large green accumulation noted as well as the wave count and possible . The expectation is for price to complete wave 5 of this first larger wave up, followed by a retracement for the larger wave 2 which should end around the of the green , printing the right shoulder. This would be an within the and this accumulation would not have a Spring. We should see candle spread increasing and expanding as price heads into that larger wave 3, and breaks the neckline, which would take it to the of the light blue noted. That larger wave 4 should retest the neckline as support and then thrust into a final larger wave 5 which ends at the top of the larger red price range tool target based on the height of the . This gets price around $5800-$6000. It also brings the 2018 into play. As I have been stating all year, 2018 appears to have been accumulation with this recent move down being the Spring. If you are waiting for sub-$3000 prices, then you may not get it.
That being said, I do have another EW count which would have this move up toward the $4400 area as the B wave with the C wave still to come. That C wave would see price dropping below the at the beginning of the blue wave 1 to make a new low. This would be a Spring in the green accumulation , if it were to play out like this, and then we would start counting five waves up as that should mark the lowest price we will see. Trader should watch price around the possible right shoulder for clues as to which way price is likely to go at that time.
The 1H chart on the right shows, what I believe to be, a running flat wave 4 correction completing. We should see the 5 waves down as drawn before beginning the wave 5 of the larger degree back up. The two recent highs would then be printing a (not confirmed until price closes below the horizontal green line) which has a price target of the small red price range tool target. The second top negated any potential in or in the near term, suggesting further movement down as well. The blue shows this small TF consolidation and would be re-accumulation without a spring (akin to what I described above) with the target being an .
There are never any guarantees, so traders should remain vigilant and keep their risk management strong.
Every day, we have a choice to act positively or negatively, so if you get a chance, do something decent for someone today which could be as simple as sharing a nice word with them. You just might change their day, or even their life.
Remember, you can always click on the “share” button in the lower right hand of the screen, under the chart, and then click on “Make it mine” from the popup menu in order to get a live version of the chart that you can explore on your own.
Published at Mon, 24 Dec 2018 15:42:38 +0000
