In EW, triangles are a mixed blessing… They are likely to resolve into the direction of the prevailing trend, in other words, they are continuation patterns, which is bullish (in this case). On the other hand, they usually turn out to be waves 4 or B – and in both cases, of course, what follows after the breakout is a reversal. In either case, they tend to precede the completion of a move.
Here, the $$$ question is: would this triangle be a ‘4’ or a ‘B’. In the second case, the breakout is a Wave C, and as such, may go on. If it is a 4, it may be close to being over. I would defer to other resident wave counters to do the labeling at this time. My guess is that it is more likely to be a 4, and close to the end of the move, but I am not sure. |
