Evening Update: Two Potential Paths for Retrace
Just when I thought I would be denied the $109 level by .40 cents Solana follows through AND THEN SOME. Today we topped out just under $111. We want to see price stretching in the direction of the trend. Now, we're are clearly in our retrace portion of this initial wave up. As I have posted many times after an impulsive 5 wave structure we should see price correct. That's is happening now, but it MUST do it in a 3 wave fashion.
I have outlined 2 potential scenarios on the above chart.
1) The Blue Arrow is my alternative count. This has us topping now in a B wave then should decline in a final C wave down to target the $100-$103 level.
$102.865 = The .50% Retracement Level
$100.9550 = The .618% Retracement Level
2) The Black Arrow is my primary count (or my preferred count). This has us topping now in a minor (a) of b wave. I just think we need more time consolidating in this area then several hours. This will bounce around (as per the black arrows) that should decline in a final C wave down to target the $100-$103 level. (Same target as my Alternative count just taking more time).
$102.865 = The .50% Retracement Level
$100.9550 = The .618% Retracement Level
The moral of this story is if price declines in a 3 wave fashion as outlined above, then takes out today's high....the probability of a new local high north of $143 just increased exponentially.
I will update the chart in my morning update. If we eclipse the $111 level again this week, we will have some resistance at $116 but really the first stop will be $123. As always I will update the pathway to higher levels.
IMPORTANT NOTE: If we take out $111, DO NOT SELL EVEN FOR A TRADE. This will move to the upside fast, and with little retraces. YOU'VE BEEN WARNED.
Best to All,
Chris
I have outlined 2 potential scenarios on the above chart.
1) The Blue Arrow is my alternative count. This has us topping now in a B wave then should decline in a final C wave down to target the $100-$103 level.
$102.865 = The .50% Retracement Level
$100.9550 = The .618% Retracement Level
2) The Black Arrow is my primary count (or my preferred count). This has us topping now in a minor (a) of b wave. I just think we need more time consolidating in this area then several hours. This will bounce around (as per the black arrows) that should decline in a final C wave down to target the $100-$103 level. (Same target as my Alternative count just taking more time).
$102.865 = The .50% Retracement Level
$100.9550 = The .618% Retracement Level
The moral of this story is if price declines in a 3 wave fashion as outlined above, then takes out today's high....the probability of a new local high north of $143 just increased exponentially.
I will update the chart in my morning update. If we eclipse the $111 level again this week, we will have some resistance at $116 but really the first stop will be $123. As always I will update the pathway to higher levels.
IMPORTANT NOTE: If we take out $111, DO NOT SELL EVEN FOR A TRADE. This will move to the upside fast, and with little retraces. YOU'VE BEEN WARNED.
Best to All,
Chris
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