DOGEUSD: getting a bit dodgy

27 May

The reversal from May 1st started impulsive then not sure what happened. It is possible that price action from May 13th is some kind of a leading diagonal structure of a lower degree wave 1, but it is taking too long to stay as a lower degree structure. At this point we might face the possibility that the minor degree wave 4 correction hasn't completed yet and the recovery so far has only been a B wave. If that is the case, the line on the sand remains at $0.1072 and ideally we do not want to see a daily close below $0.11. Best case scenario we see some more sideways action over the summer to have the structure complete as some kind of a double combo correction and price remains at $0.13. We shall see. What we absolutely do not want is a break below $0.1. If that happens then it will confirm that the intermediate wave 4 hasn't completed yet and price can plunge below $0.04. Right now, not going to think about that calamity. Will keep an eye on the Bollinger bands and MACD. At this point, sideways price action seems most likely.