As I wrote yesterday: “a spiky drop driven by panic under 5,000 will be the best sign that we are bottoming and would be a great entry point for the first tranche”.
And the very next day we got that panic selling.
That final decline in the wave ( c ) of ( v ) down in the ideal world should be structured as five wave impulsive structure.
Today’s drop looks like a perfect candidate for the wave c of iii And that wave c of iii down may extend to 4,700 – 4,500.
Then a corrective pullback in wave iv up should hold under 5,750 to give birth to the final push down in the wave v into the green target box.
In the real life such a final drop quite rarely gives us such a perfect completion.
What we can get is one more push down and then a reversal breaking out through that first resistance at 5,750.
Therefore I will buy the first tranche if they push it down to 4,700 – 4,500.