Hi Roger,I've never used Elliot waves and to be honest don't...

Hi Roger,

I've never used Elliot waves and to be honest don't really know anything about them/how they're used.

By trend lines, I assume you mean the path arrow drawings I put in? The horizontal dotted line is the closest major level of interest (based on a longer term volume profile). Price is aways holding or losing support/resistance levels and that's pretty much all I've drawn in. It 'lost' the $1.63 support, so we'll either see a rejection from this level when it returns, or price will push back over and try to hold it again. Nothing fancy. Eventually the market will create some new levels I'll watch for, but so far it's still respecting the ones on my chart.

The reason I expect price to then move to the VN High if it reclaims the $1.63 support is that it signals buyers have showed up again, and potential longs will be looking for a new high. It will also most likely create some structure that will allow those longs to apply risk management to their position. Buying on the drop down and below the AVWAP is riskier if you're looking for somewhere to put a stop loss. Although if you're bullish and looking to buy dips to hold long term, even though there's lost ground to make up, that may be a reasonable entry area (and I did give a family member cash to buy below the AVWAP. We'll see if it turns out to be a good or bad birthday present soon).