SUMMARY
MELON (MLN) posted a very nice five wave impulse following a breakout from a symmetrical triangle. It then retraced almost all of the rise in a deep abc retrace as can be seen in below chart. The depth of retrace is often reflective of the degree of trend and also wave 2 personality. Recall that wave 2 can retrace as much as 99%, as long as it doesn't equal the start of wave 1. MLN has pretty much demonstrated that feature!
What's more important is whether there is a bottom in progress. The abc waves are labeled with their subwaves and a zigzag can be seen. Since this was a deep retrace, it would likely be a zigzag as it provides a farther reach in price than a flat. The C wave shows a very nice subwave set of 1,2,3,4,5 which also fits well into the wedge pattern.
A closer look shows a minor correction in progress. However, IF this is also another wave 2, but smaller degree of trend, then the abc could go beyond and below the wave 4. For now, I've placed the smaller c to about equal wave 4.
Legal Disclaimer: This is only my opinion, make of it what you wish. What does this mean? It means it's not advice nor recommendation to either buy or sell anything! It's only meant for use as informative or entertainment purposes.
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