The whole decent from around 8500 is following a Fibonacci channel very accurately. Coupled with confluence zones, especially the strong level at 6000-6100, there is a high probability that we are entering a countertrend which will either:
1. Terminate at around 6800 (pink line). A steep decent should follow to 5000.
2. Terminate at around 6600 (red line). This will most likely mean that the current Elliot wave is an ending diagonal which will test the yearly low of 5800 and start a larger countertrend from there.
1. Terminate at around 6800 (pink line). A steep decent should follow to 5000.
2. Terminate at around 6600 (red line). This will most likely mean that the current Elliot wave is an ending diagonal which will test the yearly low of 5800 and start a larger countertrend from there.