Melon (MLN) Technical Analysis Shows Downward Wedge Likely Won't Generate a Lower Low

SUMMARY

Melon (MLN/USD) pattern of downward wedge is quite steep. The retrace has thus far exceeded the 0.78 Fibonacci zone and yet it's still not complete. The wave mapping shows the blue abcde with all but wave e being complete. Even if there is a breakout, price and time can be extended through sideways action. Still, the steepness of the wedge often indicates a potential for a sizable breakout. If measured in percentage of move, it could be significant.

The subwave closeup shows that the final abc subwaves of the blue E wave will probably require an incremental lower low. This would still not set a lower low from prior lows before the wedge formation. Whether trend reversing or not, once this wedge pattern completes, a breakout is probable.

Legal Disclaimer: I am not a financial advisor nor is any content in this article presented as financial advice. The information provided in this blog post and any other posts that I make and any accompanying material is for informational purposes only. It should not be considered financial or investment advice of any kind. One should consult with a financial or investment professional to determine what may be best for your individual needs. Plain English: This is only my opinion, make of it what you wish. What does this mean? It means it's not advice nor recommendation to either buy or sell anything! It's only meant for use as informative or entertainment purposes.

Please consider reviewing these Tutorials on:
Elliott Wave Counting Tutorial #1
Elliott Wave Counting Tutorial #2
Elliott Wave Counting Tutorial #3
Laddering and Buy/Sell Setups.
Laddering Example with EOS
Tutorial on the use of Fibonacci & Elliott Waves
@haejin's Trading Nuggets
Essay: Is Technical Analysis a Quantum Event?

Follow me on Twitter for Real Time Alerts!!
Follow me on StockTwits for UpDates!!
--
--