The 5 waves of the medium term uptrend compiled wave A of a larger degree - colored magenta in the chart. Now we have A-B-C sequence in place with wave C developing (colored red in the chart). The A-B-C are the subwaves of wave B of larger degree (the magenta wave). The targets of the downmove are Fibonacci retracements of 0.9651-1.0182 (wave A), 0.9893-1.0182 (subwave 5), and expansions off 1.0182-1.0073-1.0173 (subwaves A-B).
Supports:
- 1.0003-0.9997 = confluence area of .618 retracement and expanded objective point (XOP)
- 0.9979 = .382 ret
- 0.9916 = .50 ret
- 0.9888 = super expanded objective point (SXOP)
- 0.9854 = .618 ret
In case the price reverses up to continue the uptrend the nearest resistances will be Fibonacci retracements of the wave down from 1.0182 - this wave is not developed yet.
Overbought/Oversold
The Detrended Oscillator is establishing below the zero and the latest peak down has exceeded the previous ones which indicates a downwave of a larger degree. Assuming that the medium term trend is down it's preferable to seek for topping signals to enter short when the price hits a Fibonacci resistance (not yet available) or gets above the zero or the overbought (15-25 pips to go).
Read more on how to apply Fibonacci studies to calculate price targets.
