As we predicted in one of our scenarios below, the chart seems to complete an Elliot impulse (its first wave could be a non-standard impulse or a diagonal).
Because this chart respects Gann Square and arcs, the fifth wave will likely land around 135. This also fulfills one of the standard extensions of the H &S downfall, i.e., FE2.000.
Possible next developments:
- Ascending triangle -forming corrective wave ABC before the next impulsive bearish movement. A bearish scenario in which the chart fails to extend more than FE 1.272 or so for I. H&S and turns around.
- 5-0 -to retest the daily high. If it rebounds at around 138, the chart can be construed as still bullish. This is less likely, considering the U.S. interest rate hike will cease.
*Although I know there are some haters for Gann Square and Arcs, any meaningless hate comments are immediately reported.
