FCPO: Hourly EW Count - Aug 17th 2018

There are 2 possible scenarios that we can come up with.

Scenario #1: Wave (ii) of (5) had already completed and market should now move further down south in a decisive manner. We would like to see the lower correction channel (solid blue lines) to be broken and the gap area (2164 - 2180) to be closed. By fulfilling these 2 conditions, we can safely rule out that bullish momentum has finally run out of steam.

Scenario #2: As of now, the correction structure of wave (ii) of (5) is hardly recognized. We prefer to assume that wave (ii) of (5) is currently unfolding and is expected to develop into a simple zigzag. In this preferred scenario, market should trade lower to the golden retracement area (2203 – 2205) before making the final push to reach new high at the fresh confluence zone (2233 - 2238).

Bear in mind, the gap area between 2221 - 2243 cannot be breached. If market pulls off to close the gap area, it is very likely that wave (4) is still progressing.