26/4/2020

Daily time frame 

On daily time frame, sub 4th wave has been realized and completed with a lower degree abc correction waves. it was completed  earlier than expected which was 10 points away from 38.2% fibo and sub 5th wave has just on its way down. These was confirmed by 2 bearish signals formed as below:

1) Evening star candle formation

2) Ascending diagonal/Raising wedge formation breakout at lower wedge line

Therefore, the donwside target is projected at around 1303-1322 from wedge formation. 

The intermidiate bearish formation will be void if its able to move and break above upper wedge line and the major upper trend line.

Weekly time frame 

On weekly time frame, a dark cloud cover candle formation was formed after some selling pressure took place and caused +DMI to be flatten after breakout last week. ADX had also flattening since -DMI crossed down. However, -DMI had further broken down the support line at 37.4 which indicates the current bearish sentiment is still an marginal within expectation. Therefore, a marginal sideway movement is expected in coming days. 

Conclusion

Daily time frame is reviewed as there was an important signals which indicated sub 5th wave has just begun with an implication of Major degree Wave C to be ended soon once sub 5th wave is completed. If these is valid, sub 5th wave would consist of 5 lower degree of mini waves towards to downside. However, the downside might be limited as the sub 5th wave would be categorized as FAILED wave or Truncated Fifth which implying that it might not test or go beyond sub 3rd wave at 1207.8. These indication has been brought from the PTI reading which reduced from 42 to 33 and Falling below the minimum criteria to succeed all fifth wave movement.            

As a sideway movement is expected, the construction of the entire sub 5th wave to be monitored closely towards to a potential target range of 1303-1322 which derived from daily time frame or Final support to be watched at range 1250-1260. 

Shall Major Wave C be ended soon. 

Finger Cross.

Wave Believer