According to this analysis we could be at the end of a complex correction (WXY) landing us on the juncture of two crossing channels (bearish corrective channel, red modified schiff and bullish impulse channel, green modified schiff ).
In support of this current count stands the bullish divergence (higher low on MFI and lower high in price action). The count is further supported by the fact that Wave Y is a 1.272 fib extension of wave W.
In accordance we should see a re-test of the previous bullish channel (green modified schiff ) in what could be the beginning of wave C of the higher degree.
Validation would show a break and re-test of the bear-channel. Invalidation would be a break of the bull channel resistance.
In case of invalidation we could see some more downside, targets may be the bottom of the bull channel and/or 0.786 fib level of the last impulse wave up.
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In support of this current count stands the bullish divergence (higher low on MFI and lower high in price action). The count is further supported by the fact that Wave Y is a 1.272 fib extension of wave W.
In accordance we should see a re-test of the previous bullish channel (green modified schiff ) in what could be the beginning of wave C of the higher degree.
Validation would show a break and re-test of the bear-channel. Invalidation would be a break of the bull channel resistance.
In case of invalidation we could see some more downside, targets may be the bottom of the bull channel and/or 0.786 fib level of the last impulse wave up.
Please share and comment.