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Cable pushed lower today as the short term wave count suggested
The price has so far failed to break the lower trendline, but it is close.
The price then bounced this morning in what may be the start of wave ‘1’ pink to the upside
And the long overdue rally in wave [iii] green.
I like these market setups,
The sellers have all sold,
And the buyers have all given up!
The way is now clear for another bull run higher in wave [iii] green.
The low remains my initial focus for a bullish price action signal.
The current wave count still calls for one last drop into the trend line
below to complete the large flat correction.
The momentum indicators on the 4hr chart are already pointing higher and have diverged in a bullish fashion.
The RSI is now rising rapidly off an extreme low
This is a bullsih sign that the price will follow soon.
So the market has reached an extreme oversold level in momentum readings,
An extreme in sentiment,
And a point of inflection in the wave count.
This market is ready to recoil back into a rally any day now.
The bullish potential is quite large at the moment.
The immediate target for wave ‘iii’ brown is at 114.15
the 162% extension of wave ‘i’ brown.
Last nights wave count was bang on calling the rise a flat correction in wave (ii) grey.
last night the price stood at 21479, the high reached 21502.
And the market dropped to a low of 21195 today.
It will not change a single thing for the future of this market,
And consequently the economy as a whole.
We are in for a long term bear market in stocks and a long term recession in the world economy.
the price pushed higher again today but the rise is so far in a three wave form.
I am expecting another elliott wave signal to form soon,
but we need a clear five wave movement off the low to facilitate that.