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| Hourly EW |
Hourly chart shows that we have convincingly broken the rising channel. The pullback after the break down was resisted at the lower channel line. Now classical technical analysis would call this a confirmation of the down trend. But as EWP practitioners we know that an initial 3 wave decline, may mean one of three possibilities,
1. A DZZ or TZZ correction.
2. A flat correction.
3. A triangle (but since this is wave II as per our EW count this possibility is ruled out).
So going by the first possibility we get even deeper correction, but only after completing a small pullback. And going by the second possibility we may see a rise to the high of 5630 levels in 3 waves and a sharp cut in 5 waves around the bottom of this wave (a) to complete wave (c).
Since this wave I was very sharp, we might get into a consolidation mode for a couple of weeks, before we resume the up trend. The support and resistance levels and Fibonacci levels are same as mentioned in our last post.
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