A touch of the coincides with the for what I'm labeling wave-2 of 5 and gives more structure to the trade. The stop needs some room. If we start to go deeper than the 61.8% the $4,000 round number magnet effect may start to play a factor. My suggestion is a stop below the 78.6 to give it plenty of room. Up side is to targets to just under $5,000. Choose your size according to your risk tolerance and account size. If this count is invalidated and stops are hit... there will be a larger retracement on the daily you won't wont to miss because you burned your fingers on this play... My entry is just above the .
Next question: so you rule out the chance that it might be still in wave-4 of bigger wave-3 and developing an irregular correction, of which wave C that runs 138.2% of wave A will take us right to 38.2% level of previous wave-3 (of 3) and lower channel line around 3650?
Reason I'm saying that cause there's a divergence building up btw the last 2 peaks.