Our current downward wedge (pink) is approaching its end. We have a little bit more to drop to hit the bottom one last time, possibly around the 78.6% retracement of our rise between 2/5 and 2/20, which brings us down to 7136.
From there, the hope is we'll soar upwards (green arrows). A target for wave 3 being 1.618 of wave 1 gets us to 16685.
On the negative side (yellow arrows), if we break downward, we're looking for support at the bottom of the orange triangle. I drew two bottoms for the orange triangle - either way, we're looking for support somewhere between 6100 and 5873 (which would be a double bottom alongside the low from 2/5). The 1.618 fib extension would give us a target of 15.4k - 15.7k,
On the even more negative side (red arrows), if we don't break downward quite as fast as the yellow arrows, but instead just gradually sail downward, we could go as low as 4400. The 1.618 fib extension this time would give us a target of 14k.
I'm somewhat new at this - don't take any of my words as financial advice!
From there, the hope is we'll soar upwards (green arrows). A target for wave 3 being 1.618 of wave 1 gets us to 16685.
On the negative side (yellow arrows), if we break downward, we're looking for support at the bottom of the orange triangle. I drew two bottoms for the orange triangle - either way, we're looking for support somewhere between 6100 and 5873 (which would be a double bottom alongside the low from 2/5). The 1.618 fib extension would give us a target of 15.4k - 15.7k,
On the even more negative side (red arrows), if we don't break downward quite as fast as the yellow arrows, but instead just gradually sail downward, we could go as low as 4400. The 1.618 fib extension this time would give us a target of 14k.
I'm somewhat new at this - don't take any of my words as financial advice!