NOTE: For an update (play-forward) of this analysis, click on the Tradingview chart image above, then the triangular play button when you get to Tradingview. Enjoy and comment what you think!
Hola trader friends, I love the Binance chart long-term, they have a strong business and I believe they have a great future. But, it’s first set of Elliott Waves up looks complete so I’ll be brief today.
BOTTOM LINE:
- Binance has likely topped on its first major move since opening their doors.
- BNB Token had 3 legs up, each having at least 5 Impulse looking trending waves up, and two intervening corrections.
- Corrective waves alternated their patterns, depth and length. Perfect for a 5 Wave Impulse move to be complete.
- Current up-move off low on 04/20/18, looks like a weak corrective bounce, rather than a new up trend.
- Main cycles are now pointing down, at least until July 23, 2018. Consider shorting opportunities until then, or a new high is made negating this view.
ELLIOTT WAVES:
- I’ve labeled the all-time high as a completed Wave (1).
- First down move from the ATH, labeled Wave (a), and would likely be only the first corrective wave of an “ABC” 3 or more wave correction.
- The recent bounce would likely be Wave (b).
- I think it will ultimately be a FLAT correction , or a ZigZag . Either way, Wave (c) would likely be below where BNB is trading now, regardless of the shape of the correction. It is just a question of how much lower.
- After Wave (c) completes, that would likely mean that the first large correction, Wave (2) would be complete and a much larger degree Wave (3) would unfold higher. If true, you don’t want to miss that move, especially since Binance has such a large market share.
VOLUME FORCE:
- Volume Force also says the recent bounce was likely a weak corrective rally, not new uptrend.
CYCLES:
This is a very new token. Trading began in August 2017, so the medium-term and Longer-term cycles are less trustworthy until there is more data, with that said:
- Medium-term pink cycle has topped and bottoms July 23 +/- 2 days.
- Shorter-term cyan cycle is up until June 9th, then bottoms on July 3.
- Remember, the larger cycles usually dominate the smaller cycles. Since the bigger cycles are heading down, this bounce will likely be over before June 9th, and the low, even as stated, will likely be later.
NEGATED IF:
- This short-term bearish outlook would be negated if BNB makes a new high and the Klinger Volume Force indicator makes a new high, higher than its high on May 18th. If negated, that means this token is riding a much larger cycle than
we can currently measure, which, is totally possible, and even likely, since it is less than a year old.
DISCLOSURE:
- This analysis is meant for educational purposes only. You trade at your own risk!
Cheers!
Michael Mansfield CIO
5/24/18, 6:00 PM EST