General overview for 23/01/2017:
After the top of the wave B-cycle at the level of 20924 in August 2015, the market is in corrective cycle wave C. The three wave down move in form of a zig-zag pattern had been labeled as wave (A). Currently, since February 2016 the market is unfolding wave (B) of the overall cycle and it looks like the top of this wave is near.
On a daily time frame chart, we can see uncompleted irregular corrective cycle for wave (B). The internal corrective structure since the top of the wave 3 at the level of 19695 had been labeled as wave 4 or (a). This means there is still one more wave missing before wave (B) is completed. Please notice this structure might evolve into more complex and time-consuming pattern as well.
The intraday H4 time frame chart clearly indicates a correct impulsive wave progression inside of the wave 3 and now an ongoing corrective cycle.
20924 – Swing High
20024 – Technical Resistance
19695 – Wave 3 Top
18620 – Wave 4/a Bottom
17902 – Technical Support
All traders with ongoing buy orders opened last year should now be extra careful as the up trend might be terminated soon. However, there is still one more wave to the upside missing and the target for buy orders should be placed at the level of 20000*.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.