Quick question - for the original poster - at what price is your theory invalidated? (Mental or literal stop-loss?)
13.16?
14.16?
Just curious.
In theory, there is no actual price that invalidates the B-wave possibility. In practice, a B-wave typically retraces to 38.2%-50% Fibonacci retracement level of the preceding A-wave in a zigzag (5-3-5) corrective as opposed to around 100% in a flat (3-3-5) corrective. Now, because the move off $2 was composed of 5 waves higher within a basic channel, the flat option was invalidated leaving the zigzag. In short, if the price heads above $13.46-$17 (38.2% - 50% Fibonacci retracement off a $32-$2 A-wave), the price is likely heading above $32 in a 3rd wave. Until then, the B-wave is
just as likely as a 3rd.
Also keep in mind that, if this is a B/X-wave moving higher, it doesn't necessarily need to head below $2 in a vicious C-wave after it completes before heading much higher. In a very large triangle or combinational corrective, the price could head sideways between $32 and $2 for years before finally taking off.
This.
Thanks for posting something intelligent, in contrast to all the snickering posters who don't understand enough wave theory to comprehend the nature of the idea, or the specific fact that I said it's a potential wave count with some real merit to it and not even remotely meant to be an exact forecast, especially in the short-term.
Again:
Since then we've done an even smaller a-b-c to form the B wave, which should end eventually with a nice lower high, potentially at around $12 (but there's a wide range here, I'm just making a guess based on volume).
I've lost some respect for some of the other commenters.
. $12.16 would be the first fib resistance point about 38% whereas $15.40 is about 50% which is the next major resistance point.
