ADA is starting to show some early signs of a bottom after tagging the very top of our reversal range at the 50% retracement. It then advanced higher in 5 waves, which is bullish. The circle shows the original forecast for the current wave 2 correction. If the bottom isn’t in already, it should be close. Notice we did have a similar small rally before pulling back within wave A.
Check out the action off the low on the 5-day chart:
We’ve got 5 waves up in an upward channel with a series of higher lows and higher highs. Wave 5 reversed at the top of the channel and broke under the short term trend line. The bullish outlook will be looking for a corrective pullback (ideally in 3 waves down or sideways), followed by another 5 wave advance.
The current .086 bottom and lower wave 2/4 trendline could be used as reference points for maintaining short term bullish expectations.
We’ll put out some bold wave 3 projections once there’s stronger evidence for a bottom 🙂
Happy Trading!