27 September 2019

Wave 2 Ended?

Wave 2 (brown) has retraced by nearly 61.8% of Wave 1. This is the common Fibonacci retracement for Wave 2. So I would expect that the STI will recover and have a strong uptrending Wave 3 next week. It is possible that the STI could go lower before rebounding. But if it drops below the start of Wave 1 at 3040.16, the wave count will be invalidated. Then the current structure will be part of Wave C (brown) which will go much lower.

Even if the current structure develops into an impulse wave with five subwaves, it is also possible that it could evolve into a corrective 5-3-5 zigzag. But I am getting ahead of myself. All these possibilities reflect the huge uncertainty in markets.

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