On the way down we always focus on lows made by previous pullbacks in waves iv of two different degrees:
When a rally that followed the five wave up gets completed we always focus on two retracement fibs applied to the whole rally, from starting point at the bottom to the top:
To forecast how high a corrective (a)-(b)-(c) up bounce in wave -B- up may climb we should apply retracement fibs to decline in wave -A- down.
A weak corrective bounce may find resistance at 41.4% retracement = 12,900.
A normal corrective bounce may retrace 50% of the preceding decline (13,050).
We can not exclude scenario where wave -B- up stretches’ higher to 66.7% retrace ( 13,337 ).
We will be able to make a more accurate prediction after completion of two subwaves (a) up and subwave ( b ) down based on extensions of subwave ( a ) up.
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