Rising wedge pattern broke as expected and we have formed an ABC correction.
ABC Correction
There are 2 possibilities of ABC corrections in this case.
1st is that we've already completed the correction (green waves). And this one is most likely to me cause we hit the fibonacci level at 61%.
2nd is a longer one and would indicate that we're on the B wave now and that we have one more leg down to the next support zone which is at $5,900 (red waves)
Either way, to trade these scenarios, I would concentrate on buying on support and selling at resistance levels.
Where Do We Go From Here?
Bullish divergence when RSI is gaining strength and price is moving down.
However, we're at a resistance zone both in price and also in RSI strength so beware. If we get rejected here, I would expect a price dump to the orange line.
Check next picture for mid term view.
Mid Term Elliott Wave Count
Mid term target at around $7,600
Currently in the 3rd impulse wave. This count will get a stronger confirmation if we see a lot of volume here. If not, I would be cautious.
First obstacle is $6,800. Let's see if we can break that resistance zone.
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Disclaimer:
I'm not a financial advisor and these are only my opinions. I don't take any responsibility for any investments that you make based on my analysis.
