Yet again I'm at the drawing board with Elliott Wave. Again, this posting is just exercise for me, but hopefully it proves insightful. Here is the latest count:
(Note: StockCharts.com has wicked awesome tools, but their free service only goes as small as daily charts. Intraday is necessary for exact subwave counts. I would love me a free chart service like this on an intraday level.)
Intermediate wave 1 is close to its top, there seems to be forming a long winded ending diagonal before the real correction of intermediate wave 2 begins. But wave 2 is coming shortly, so I included some Fibonacci retracements. I'd love me a 61.8% retracement for a nice buying opportunity.
Remember, my previous wave 4 scenario was proven invalid, which means that we are in a substantial bear market rally, with 5 waves up. Seeing that wave 2 is only beginning, those looking to get in should do so now with this buying opportunity while the eating is good.
How much upward movement is there really?
Well, assuming 850 as the top of wave 1, and assuming wave 3 extends 1.618 times wave 1, and assuming wave 2 has a 50% retracement; then wave three would extend to 1,068. And after that, assuming a 38.2% wave 4 correction and wave 5 equal in length to wave 1, an ultimate top of 1,139 would be in the cards.
Of course that is just one of the many ways this rally could unfold, but what's important is to recognize the upside potential.
On a final note, I am a beginner with Elliott Wave. I am posting these charts here for exercise purposes and to determine if the EW is a useful tool.
(Note: StockCharts.com has wicked awesome tools, but their free service only goes as small as daily charts. Intraday is necessary for exact subwave counts. I would love me a free chart service like this on an intraday level.)
Intermediate wave 1 is close to its top, there seems to be forming a long winded ending diagonal before the real correction of intermediate wave 2 begins. But wave 2 is coming shortly, so I included some Fibonacci retracements. I'd love me a 61.8% retracement for a nice buying opportunity.
Remember, my previous wave 4 scenario was proven invalid, which means that we are in a substantial bear market rally, with 5 waves up. Seeing that wave 2 is only beginning, those looking to get in should do so now with this buying opportunity while the eating is good.
How much upward movement is there really?
Well, assuming 850 as the top of wave 1, and assuming wave 3 extends 1.618 times wave 1, and assuming wave 2 has a 50% retracement; then wave three would extend to 1,068. And after that, assuming a 38.2% wave 4 correction and wave 5 equal in length to wave 1, an ultimate top of 1,139 would be in the cards.
Of course that is just one of the many ways this rally could unfold, but what's important is to recognize the upside potential.
On a final note, I am a beginner with Elliott Wave. I am posting these charts here for exercise purposes and to determine if the EW is a useful tool.
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