Foreign Welcome to another update video about Chili's Um we it's time to take a look at the Chili's chart again and we are here in a Possible broader bullish pattern that Started back in May with the possible Low of the bear Market It's of course not guaranteed but at the Moment we can assume that this was the Low of the bear market for Chiles based On the structure that developed since Then Um we moved up in what I would consider A wave one we're currently coming down In a wave two Which should close or stop before we Break the melee and we would then move Up in a wave three come down to four and Move up in a five Very important Is to make this structure work it needs To hold the eight Cent level eight Cent Level because this is the May low it Would even be more important because That is an even earlier signal ideally It holds the 12.3 Cent level that's the 78.6 percent flip level if we go below 12.3 cents it is already a warning Signal that the overall bullish petal Here isn't going to work out I do however expect one more leg down Which should however ideally stop before It reaches the 12.3 Cent level there is
Still the 88.7 FIB level at 10.3 cents But this is really the very very last Chance for the Bulls to turn around Before making a new low So let's zoom in The overall structure that's developed In my opinion here since the high on the 23rd of September Is a w x y pattern that is a so-called Corrective wave pattern and in this y Wave in which we currently are We have three waves a b and c and the C Wave is a five wave structure so I go to The one hour chart we take a look at That So the C wave is a five wave structure Which means we were looking for five Waves whenever we do that we try to find The third and the fourth wave we can Easily identify the third wave it is Most of the times the longest wave And also the strongest one he very Clearly identifiable Um which bottomed here on the 22nd of November The Wave 4 is usually a shallow Retracement sometimes a triangle and That is exactly what we see I think I Mentioned in the previous videos that This could very well become a triangle That is currently working out Um and I'm still waiting for one more Leg down here now I will only change my View if we go above the resistance here
And go above 24 20.5 cents if we go Above 20.5 cents I will have to assume The low is already in at the moment I Don't have any sign for that The triangle is a trend continuation Pattern and if I use the Elliot wave Count as well a b c d e which is a Triangle count you would normally expect A triangle to break to the opposite side Of the E wave now you can very nicely See here that we are heading into the Apex of this possible triangle there is Not much more space and basically within The next Well let's say 24 hours we should get a Decision here if we just take the height Of the triangle as you would most Traditionally do it and add it to a Possible breakout point it would take us Down to around 15 cents 15.3 Um as per the Elliott wave extensions so We can do that as well look at the Elliot wave targets for the fifth wave So we can take the length of the wave One We add it to the high of the wave 4. So the very first Target for a fifth Wave would be the 61.8 percent X 61.8 extension that would Take us to around 14.5 cents and then We've got the one to one ratio at 12.6 Cents it shouldn't really drop below That Um because if you drop below that
Again I showed you that in the beginning With the retracements we're getting into Really dangerous territory I mean it Could very well you know come down here That this is this is going to be support Range so if we make one more load this Is going to be Um you know major support range here Between let's say Yeah you know 15.3 which is sort of that Target for The triangle 15.3 to to 12 cents this Will be massive support range especially Here at the previous low at 14 and a Half cents of that wave a So I'm looking at one more low First key support would be the 15.3 Level then you've got 14.5 and then We're going down to those levels that I Showed you but Um it doesn't necessarily need to need To go any not much lower it just needs To go below the low of the Wave 3 which Was at 16.7 cents to make a valid wave 5. when do we know that the triangle is Indeed breaking to the downside well we Know Or the first indication is the break of The wave d low that is at 17 cents that Will make it likely that the triangle is Indeed breaking the low of the wave B When that gets broken at 16.8 cents that Will be confirmation and then you can be Pretty certain that we are heading down
Should we go up from here then this is The target range yeah then we have to Look at the Fibonacci retracements Because this would indicate that we're Not putting a triangle in place indeed Then we would have put in Um Second It's not a triangle then You need to change that slightly here The way forward then most likely just be An ABC pattern so let me show you that As well so basically you just a b and We're now putting the C wave in which Could reach 19.5 cents or 20 points four Yeah and really only above that level we Have to consider something more bullish Okay that's my update about Chili's Hopefully you like the update if you did Please hit the like button leave a Comment and subscribe and if you really Like the content then please check out The channel membership thanks a lot for Watching bye