UPDATE: Chart is nulled. Principles appear to be sound.
Now that the recent movement has found its temporary bottom at the 320ish support level...let's catch the flip side and make some booze money for the weekend.
The point of the chart is to show that (1) that a correction is taking place, and (2) that it has the potential to be substantially larger than normal.
Here's the reasoning:
(0a) The price movement has almost certainly stopped for the next 5-7 days at least.
(1) The price just fell massively. Roughly $35 over a 48 hours. Hence a proportionately large correction would be reasonable to expect (ie $15-25, albeit the high end will only last momentarily).
(2) We've seen many elliott wave diagonals over the last 14 days. The diagonal is a sociological phenomenon indicating movement driven by a variety of "bad" emotions (panic, over excitement, extreme bullish/bearish sentiment changes in individuals). The diagonal is generally followed by an unusually large correction.
(3) The elliott wave count I've posted is clearly incorrect. However, it does't matter. All elliotticians agree that we are entering a "wave 4" at the 315-335 area. This will be a prolonged period of sideways movement before one more drop down towards $285-300. Within that sideways movement, there is potential to temporarily touch higher price points like $340 or otherwise retest the above resistance levels.
(4) If the ellliotticians turn out to be a bunch of jackasses - WRONG LIKE ALWAYS - it's likely that it'll be bullish news and sentiment. Hence holding a long position at the bottom of this zone is a smart move.
Now that the recent movement has found its temporary bottom at the 320ish support level...let's catch the flip side and make some booze money for the weekend.
The point of the chart is to show that (1) that a correction is taking place, and (2) that it has the potential to be substantially larger than normal.
Here's the reasoning:
(0a) The price movement has almost certainly stopped for the next 5-7 days at least.
(1) The price just fell massively. Roughly $35 over a 48 hours. Hence a proportionately large correction would be reasonable to expect (ie $15-25, albeit the high end will only last momentarily).
(2) We've seen many elliott wave diagonals over the last 14 days. The diagonal is a sociological phenomenon indicating movement driven by a variety of "bad" emotions (panic, over excitement, extreme bullish/bearish sentiment changes in individuals). The diagonal is generally followed by an unusually large correction.
(3) The elliott wave count I've posted is clearly incorrect. However, it does't matter. All elliotticians agree that we are entering a "wave 4" at the 315-335 area. This will be a prolonged period of sideways movement before one more drop down towards $285-300. Within that sideways movement, there is potential to temporarily touch higher price points like $340 or otherwise retest the above resistance levels.
(4) If the ellliotticians turn out to be a bunch of jackasses - WRONG LIKE ALWAYS - it's likely that it'll be bullish news and sentiment. Hence holding a long position at the bottom of this zone is a smart move.