Test of resistance at 500$ area that was a good target area for 3 or C wave, like said in the previus charts.
Now we have two different way:
- we are in a new bullish structure, so we now have correction in wave 4, with target aroun 465 at 38% retracement of wave 3; then will come wave 5, maybe in extension form (becouse 3=1)
- all up structure was only a correction movement ABC in the primary downtrend yet; so now we will see a new downtrend and probably a return below 400$.
The watershed between these two scenarios is to set at 440$. If this correction will go below 440$ we can't have wave 4 (becouse w4 cannot go below w1 high). Otherwise, if correction stop at 465 and uptrend restart we have some confirms about wave 4 and 5 to new high. This would result in a new primary uptrend
Now we have two different way:
- we are in a new bullish structure, so we now have correction in wave 4, with target aroun 465 at 38% retracement of wave 3; then will come wave 5, maybe in extension form (becouse 3=1)
- all up structure was only a correction movement ABC in the primary downtrend yet; so now we will see a new downtrend and probably a return below 400$.
The watershed between these two scenarios is to set at 440$. If this correction will go below 440$ we can't have wave 4 (becouse w4 cannot go below w1 high). Otherwise, if correction stop at 465 and uptrend restart we have some confirms about wave 4 and 5 to new high. This would result in a new primary uptrend
