Nobody knows how the market will move tomorrow but it is possible Tuesday was the bottom, and to end wave 5. We could possibly see ABC correction or consolidation next if bullish channel (blue) does not hold.
Scenarios:
1. Price could break key level 3965 and track new up channel (blue), more bullish move with a possible bigger correction ahead.
2. Price gets rejected at key level. 3965.
A. We could see consolidation, or forms a wedge with ATH as top resistance and either blue channel bottom or green channel top as support.
B. A bigger pullback could break new channel bottom (blue) but hopefully bounce off pre-covid channel (green) top.
B-1. If green channel top does not hold as support, next support is 2692 area. (breaking this level produces lower lows)
Scenarios:
1. Price could break key level 3965 and track new up channel (blue), more bullish move with a possible bigger correction ahead.
2. Price gets rejected at key level. 3965.
A. We could see consolidation, or forms a wedge with ATH as top resistance and either blue channel bottom or green channel top as support.
B. A bigger pullback could break new channel bottom (blue) but hopefully bounce off pre-covid channel (green) top.
B-1. If green channel top does not hold as support, next support is 2692 area. (breaking this level produces lower lows)