30-MINUTE CHART
(CLICK ON THE CHART TO ENLARGE IT)All waves counting from 1 to 4 have worked very well so far. Now we are going to try to predict the end of the wave 5. Based on the fact that the wave 4 ended at the 61.8% fibo of wave 3 (see yellow fibo lines on the 4-hour chart), we start the wave 5 counting from this point (159.80). So our wave 5 will be composed of 5 wave sequences. See the 30-minute chart for the 1st sequence, which is now at 50% fibo of wave 4. This is a strong point to start the 2nd sequence, because it´s at the bottom of a bearish channel with RSI showing a bullish divergence on the 30-minute chart and it´s just touching the the fan line (white lines) on the 4-hour chart. But we don´t know if our 1st sequence will be 50% or 61.8%.
So points are:
If the 1st sequence ended at the 50% fibo, buy at failure of 154.55 with tight stop (154.35) and target 155.80, which is 23% fibo of 1st sequence and beautifully coincides with the 38% fibo of wave 4 (see yellow fibo lines on the 30-minute chart). Add lots at break of 155.80 with next target at 156.50 (38,20% fibo),
OR
Sell break 154.55 (50% fibo of wave 4) with tight stop (20 pips) but watch for next support at 154.35 (fan line). If 154.35 gets broken as well, add lots. Target is the 61.80% fibo of same wave 4 at 153.30,
