7 Sep 2020 ● 06:33 AM
I have already shown you that the metals index completed 5 waves up. now can 5 become 9 or logically this is wave 1 at larger degree and we need wave 2 consolidation for some time before another wave can develop. Worth thinking about. The chart here is of Jindal steel and it also shows 9 waves up that can be marked as 5 waves.
The second chart of Jindal Steel shows the weekly momentum that at similar levels in the last goes through a consolidation.
Even in 2004-2007 similar levels during that bull market meant a larger consolidation before going higher. What you can see on this chart is that momentum often displayed negative divergences before the pullback in prices. So lets eee if this happens here or does 9 become 13 [with a negative divegence] before we get the consolidation. For 9 to become 13 prices have to rally twice with one pull back in between.