Hey folks! I, like many of you, started feeling bearish sentiments after we broke our original upward channel (purple). I also felt we might have a rebound back to the lower boundary and get rejected, which we did. However, I altered the original channel and found that we could maintain our upward channel with the correction. Keep this in mind before thinking we will go to $7000.
I notice some TA's have the Y as not completed yet and that your Y is really the start of the B in the ABC. Thoughts?
jpbrown1023
⋅
@ernieb, great question. First of all, I'd like to note that my last XY waves of my corrective yellow 3-3-3 pattern got deleted. You can see that the purple wave Y went all the way down. They were just saved from the last time I was charting and I think I deleted them as I was charting different ideas. Now I will preface by saying I am new to Elliott Wave theory and if you have any questions, I refer you to my man MAGICMARK (tradingview.com/u/MAGICMARK/) who has some great EW posts. In EW theory, you have two types of corrective waves: ABC (5-3-5) and WXY (3-3-3). I think it's important to be aware of both because they are both plausible outcomes. A lot of people using an ABC corrective pattern have their A wave down to $7900-8000 area and this is the B wave up. If this is accurate, we should start the corrective C wave soon down to probably the $7000 level which is why I noted it in my post. However, if this is a 3-3-3 WXY corrective pattern, we have completed our corrective wave and are on our way back up. I hope this helps answer your question.