The initial move up is very messy here as you can see in the chart. There's a lot of spotty price action making it difficult to get a great count, but what I can say is from the bottom in December 2020 to where we are today, I see a potential for a 5 wave structure on a smaller degree that has wave 4 nearing completion.
We are close to the 50% retracement on my measurement of wave 2 to wave 3. I'm willing to bet that we see a bounce from here. What I do not know is if this is the bounce that will take us to the target or if this is a dead cat bounce and we may find ourselves right back where we are today.
I'd be willing to take a play around here with a tight stop loss and maybe cutting part of the position near that gap fill at the 23.6% fib retracement level (around $9.69), and loading back up on that other potential pullback.
Here's the deal with this chart. Wave 2 took several days, and wave 4 usually takes a little bit longer than wave 2. In this case, I don't think we're done correcting yet, so this may be a suckers rally that we are going into. Careful for the fade.
Trade carefully friends!
We are close to the 50% retracement on my measurement of wave 2 to wave 3. I'm willing to bet that we see a bounce from here. What I do not know is if this is the bounce that will take us to the target or if this is a dead cat bounce and we may find ourselves right back where we are today.
I'd be willing to take a play around here with a tight stop loss and maybe cutting part of the position near that gap fill at the 23.6% fib retracement level (around $9.69), and loading back up on that other potential pullback.
Here's the deal with this chart. Wave 2 took several days, and wave 4 usually takes a little bit longer than wave 2. In this case, I don't think we're done correcting yet, so this may be a suckers rally that we are going into. Careful for the fade.
Trade carefully friends!