This is a potential bullish count if the bottom has already been established at $109.
Some indications as to why this may be the correct count: - We have completed a WXY correction from the all time high (wave 1) and it retraced to the 78% fib level which is normal - RSI levels have broken the downtrend resistance and now have created an uptrend support - Channel of Sub Wave 2 has been broken out of and closed above it - WXY of Sub Wave 2 has not fallen lower than the $106 correction of the all time high (wave 1) showing no wave failure - MACD bullish crossover + histogram trending upwards into the positive area
What we need to see for confirmation of this count: - RSI continuing the uptrend above the 50 level - MACD to continue the overlap above 0 into the positive levels - A breakthrough above the strong yellow resistance line beginning from the $370 (all time high) point - A break above the 180 day EMA - Make sure the price holds above the $106 support level or we could go into a deeper correction (WXYXZ) from Wave 1
If this is the bottom of SW2 my predictions are as follows: Target 1 ($255-$280): According to the rules of elliott wave, W3 cannot be the shortest wave so we take a 100% extension of W1 to get a price target of roughly $255-$280
Target 2 ($346-$370): W3 usually targets around the 161% level, so we could see a price of around $346. If the market is bullish we can see it hit levels between 161%-178% ($346-$370)
Let me know what you think, feel free to comment and leave suggestions/tips or if i made any mistakes Any help is welcomed Thanks
@themomentum - Everyone has their own way of trading, personally i dont use elliott wave alone... i believe its most useful when using it in conjunction with other patterns/indicators. I think that elliott wave is one of the best ways to project certain price points. It has been proven to be extremely accurate if it is understood and used properly.