The correction from the March 16th high is forming as a picture perfect ascending triangle. Price is converging along the trendlines neatly, and WaveE has just finished. I want to go long in anticipation of a break throug the triangle top.
After finishing Wave-e with yesterday's gap down, price rallied 200 pips in a clear 5-wave advance. I believe price has yet to finish correcting this upmove, as first waves in a bullish sequence are usually retraced significantly.
I see the following support levels in the 1.5750-1.5780 range:
- 1.5788: Weekly pivot point
- 1.5777: 50% fib level
- 1.5771: Wave-iv low
- 1.5762: Monthly M3 pivot point
- 1.5755: WaveC = WaveA
- 1.5752: 61.8% fib level
- 1.5751: Wave-iv of iv low
With this much support, I doubt the price will head much lower. My stop will be below this level. A nice confirmation for going long is the fact that only 35% of retail traders are now long.
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