PLS chart, page-9267

A couple of interesting things to note for budding chartists:



The descending pink channel drawn is a declining wedge, which is expected to break up about 2/3rds of the way to the point, which it does, with a target 50 - 100% of the wedge height, which it reaches at around the 100% mark. Secondly the rising orange channel is forming a flag pole, but can also be seen as the first wave in a 5 step EW wave pattern OR the first wave in an ABC rising correction (3 step - A Up, B Down, C up). Note the orange channel is NOT parallel but expanding as it reaches the top. This is a signal of increasing volatility and in a rising channel indicates an imminent break down wards - which it then does. Secondly the rising channel is comprised of 2 subwaves cycles with the first wave finishing at the top of the boxed green line which marks a 0 - 100% fib rainbow with a target projecting corresponding to the 160% extension (also green) showing the expected turn of the 3 subwave (1 up, 2 down, 3 up). So so far it does everything exactly according to the textbook. BUT at this point we don't know whether it is an impulse 5 wave or correction 3 wave pattern. The retrace from wave 3 should be about 38% to 50% of the wave 3 climb and has to go up for it to be an impulse pattern. If it does then this whole set is expected to be the first wave in either a larger impulse set OR a 3 step UPWARDS correction wave, with a probable target of about 530 (but note it is much too early to predict this) in the latter case, and higher in the former.

So watch for it to climb out of this retrace and beat the high of 518.5. Topping at that point instead of exceeding it will indicate that this rise is spent and it will need to retrace further, possible to 78% of the full rise before having another go.