Now that we have clearly broken upward out of the down trend I am going to build on the proposition that this is a triangle breakout. It is fair to assume that this is the beginning or midterm of a significant correction of the entire downtrend.
If this is a triangle breakup, at first glance it is going to produce wave C of an ABC towards 2000-3000 yuan. There is another possibility which is a more obscure count, however it could potentially instate the bottoming of the down trend. A WXYXZ combination. Its something Ive only really considered very recently because I really didnt think of it until I began considering the local count was a triangle. It strikes me because a triangle in the form of Z is really the only way this thing could bottom above the penultimate lows.
I think it is neat because we have almost perfect alternation within the triple. W is a flat, Y is a zz, and Z is a triangle (perhaps a bit small in form).
Ill just leave it here for the other EW'ers to talk about. Would be great to have some discussion on this.
Iv'e said many times that triangles are terminal moves, well in this case it would be terminal in a slightly different sense of the word
