Context:
The prior 5-wave decline from wave (1) to wave (5) (LOW ~3,940–3,960) has completed, with price now breaking out of the descending channel to the upside — confirming the bearish impulse is likely finished.
Price is currently rallying into the 4,180–4,200 resistance zone, which lines up with the previous supply area and top of the descending structure.
Scenario drawn on chart (ABC correction):
Wave (A): current push into 4,180–4,200 resistance zone — likely to face rejection/selling pressure there.
Wave (B): pullback toward 0.5 fib (~4,080), a healthy retracement of wave (A) before continuation.
Wave (C): extension move up toward the -0.272 fib extension (~4,290–4,300), marked as the target zone — this would represent a larger impulsive leg beyond the (A) high.
Key structure:
The 4,180–4,200 zone is the critical resistance to watch — a clean break and hold above it would strengthen the case for continuation toward the (C) target rather than a deeper (B) pullback.
4,080 (0.5 fib) / down to 4,040 (0.618) is the expected support zone if wave (B) plays out as a normal retracement.
Read:
This looks like an ABC corrective structure unfolding after the 5-wave decline — wave (A) testing resistance now, a likely (B) pullback into the 4,040–4,080 zone, then a larger (C) extension toward 4,290–4,300. Bias is bullish overall as long as price holds above the broken channel/trendline (~4,000–4,020).
Risk note: technical read only, not financial advice — the ABC/(C) extension target is a projection, not a guarantee; confirm each leg with lower-timeframe structure (CHoCH/BOS) before entering, especially around the 4,180–4,200 resistance reaction.