I agree with your overall view that CBA is currently in a correction within a larger degree impulse down. I also agree exactly with your analysis of that correction, ie, the last couple of weeks has either been a triangle (with an impulse up to follow) or a series of 1-2's (to be followed by a wave 3 down). Your decision points there are spot-on too (imo).
I disagree with the bigger picture view, though. This is what I reckon:
Wave 4 of Wave I is a funny one, because it looks like a compound structure of a flat, a triangle and an impulse, and its terminus (27.84) is lower than its highest point (28.00).
I found that the daily MACD and RSI charts helped to clarify Wave I's components. If this view is correct, then we're currently in Wave II, which could drag on for quite a while longer, ie, it wouldn't seem unduly large in comparison to Wave I.
If CBA heads on down instead of up, then things become cloudy again, because it could be the start of the next leg down, or it could still just be wave b of Wave II. If it does start on down on Monday, then your view that it was a Wave 4 might be right <:/
I'm hoping it goes up, because then I'll at least be fairly confident of what's happening.
Regards,
Ultrafart.
CBA Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
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