As can be seen, after the Elliott imposed wave, the price line stopped going up on Oct 10, which was expected because we assumed that a correct wave would come after that. The correct wave usually comes after Elliott imposes a wave; this correct wave would draw the price down from the high-level step by step. So, will the correct wave show up this time?
We already have some signals right now. The price line entered the Ichimoku cloud; the cloud became thinner. This was a breakout signal that the price could move below the cloud soon. Also, we can see that the price just made a small descending triangle there, which was considered a bearish signal too. Although the MACD twisted around the zero level, it showed a bearish cross recently. Williams R% moved down from the overbought level; now it moves below 40 level, which means a bearish signal. We have such a few bearish signals, let’s wait for the downward trend to come.
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