As is typical in a retracement, we shouldn't be suprised if it tries to retest the 1105 level, and even exceeds by a bit. Then, price and sentiment wise, we'd be better setup for more downside( a possible wave iii or C) after a spike or two. Consolidation is definitely on the cards within the next couple of trading sessions. So i'll be watching the above trendlines and their extensions, to study the extent of it.
I leave you with this reminder of what happened in Shanghai in Sep'09, as a possible alternative scenario.
Good luck!
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Yes - I think we may see a couple of days of consolidation, but that did not happen so much during the Oct 07 - Mar 09 bear period when the market just kept impusing downwards from each brief recovery. Seems intent on keeping us guessing.
Just wonder whether this is one huge corrective wave from 24 Jan. Would account for all those messy overlaps at the end of Jan, and everything up since then stopping at 1107. Kind of an expanding triangle. Only problem is it is not symmetrical, but with a sloping support and horizontal resistance. Thoughts?
Hi Chabazite, you are right - not easy to "fit" this market into any common patterns. Generally, i use channel lines to differentiate waves of movement. So it's easier for me at this stage to look at the most obvious interpretation. More importantly the psychology behind this movement - the exact count is secondary, IMHO
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