What we need to consider here is the size and duration of each move.
The rise from 7-April through 12-May amounts to 64%.
The retrace from 12-May to present week amounts to 24%.
» So the retrace is more than a third part the size of the advance.
The rise lasted 6 weeks.
The retrace so far has 3 weeks.
» So the retrace is half the length of the rise.
Both these readings are super standard for a bull market. A retrace can easily end this week or early next week followed by 2-3 months of growth. Within this new wave of growth, there will be other retraces but a correction only comes at the end of the main wave. After the correction comes another advance and then a bear market.
Ok. We have a higher low and the chart is pointing up.
After three weeks of bearish action there is no sellers pressure, trading volume is really low.
The bears have no steam, no force, no momentum; the bears are gone.
Knowing this, we can aim high...
The retrace is over!
Thanks a lot for your continued support.
Namaste.
