From the March 2020 bottom at $40.04, the recovery qualifies to be labelled as a Leading Diagonal.
Leading Diagonals are found in wave 1 or wave A of impulses and zig zag corrections respectively.
In this scenario, the correction from $111.28 should terminate above $40.04.
The correction seems to be unfolding as an ABC zigzag.
Using the Fibonacci extension guidelines, wave C, if it is as long as wave A, will reach $59.22.
In the bear case scenario where the recovery from $40.04 is a WXYXZ, a new low should print below $40.04.
Any short position should use a stop-loss at $94.75, the wave B high.
Leading Diagonals are found in wave 1 or wave A of impulses and zig zag corrections respectively.
In this scenario, the correction from $111.28 should terminate above $40.04.
The correction seems to be unfolding as an ABC zigzag.
Using the Fibonacci extension guidelines, wave C, if it is as long as wave A, will reach $59.22.
In the bear case scenario where the recovery from $40.04 is a WXYXZ, a new low should print below $40.04.
Any short position should use a stop-loss at $94.75, the wave B high.