Looking back at my previous assumptions in regards to this Elliott Wave pattern and in combination with the Ichimoku indicator, I initially underestimated the depth of the correction and thought that we may have more support in the form of a Kijun bounce before making a move into the cloud and a potential edge to edge move once within the cloud.
While still learning many aspects of Elliott wave theory, I believe that the ABC corrective move could now be complete. In an ABC pattern, Wave C can typically be 123% – 161% of wave AB which looks to fit into the current fibonacci measurements well.
This week's candle is forming a bullish hammer reversal pattern. In the medium term, I think a move into the cloud and a subsequent edge to edge move within the cloud is still possible with a price target around $12.23. This price target is represented by the long, flat top of the kumo cloud which acts like a magnet. The longer the flatness of the Kumo, the more powerful it is as a support or resistance level and the more powerful this Kumo magnet becomes.
While still learning many aspects of Elliott wave theory, I believe that the ABC corrective move could now be complete. In an ABC pattern, Wave C can typically be 123% – 161% of wave AB which looks to fit into the current fibonacci measurements well.
This week's candle is forming a bullish hammer reversal pattern. In the medium term, I think a move into the cloud and a subsequent edge to edge move within the cloud is still possible with a price target around $12.23. This price target is represented by the long, flat top of the kumo cloud which acts like a magnet. The longer the flatness of the Kumo, the more powerful it is as a support or resistance level and the more powerful this Kumo magnet becomes.
