The market is currently fueled by immense greed, a classic psychological hallmark of an aggressive Wave 3 surge. While momentum remains strong, exercise caution as weekend profit-taking often triggers sharp, sudden reversals.
Here is how the market psychology aligns with the Elliott Wave structure on the 1H chart:
Wave 3 Peak and Extreme Greed
Psychology: Euphoria and FOMO are pushing prices vertically with minimal pullbacks.
Technical Structure: Price is testing the top of an impulsive Wave iii (or sub-wave 5) in the $89.40 – $90.69 target zone.
Weekend Risk and Wave 4 Retracement
Psychology: Traders locking in profits before the weekend could trigger a quick flush.
Key Trigger: A break below $87.01 confirms the start of the Wave iv correction.
Target Support Zone (Fib Retracement):
0.236: $86.13
0.382: $83.85
0.500 (Primary Target): $82.01
0.618: $80.18
Final Wave 5 Extension
Projection: Once Wave iv completes near the $82.00 – $83.85 demand zone, we expect a final push (Wave v) toward the upper target zone at $94.21 – $94.72, with major resistance sitting at $96.00 (c).
Execution Plan:
Correction Trigger:
Below $87.01 - Protect gains; tighten Stop Losses or take partial profits from Wave 3.
Buy Zone (Wave iv):
$82.01 – $83.85 - Watch for reversal confirmation to catch the Wave v ride.
Final Target (Wave v):
$94.21 – $94.72 - Primary Take-Profit zone before major resistance.
Disclaimer: Not financial advice. Always manage your risk and set tight stop-losses when trading into the weekend!