AVGO the ABC Correction Post Wave5
As usual after a terminal Wave5 which I think this is on AVGO (a wave 5 of 5 of 5), an ABC correction begins.
Wave A was the initial drop of $91.99 from the ATH, see picture.
Wave B is underway, and some people may think it will retrace much higher like to $450 but I think today’s high will mark Wave B top, and AVGO continues lower.
Why such a small B retracement? Because the exhausted move to the top happened against vacuum, there is no shelf support below that, who would buy from here higher with no higher volume support? (no liquidity) The structural integrity of the trend has shattered, and buyers will think they maybe buying a falling knife, and rightly so, as Wave C will be as vicious and against no order book. Another $92 down, at least. See the blue line in the picture. Note the gray resistance line for top price support into mid-June. Consolidation first in this wedge is possible before falling into the lower vacuum under its heavy consolidation region weight. This wedge will resolve down, not up, based on similar verticals from the past, and based on the initial thrust down. Too much force coming at it from above.
Wave C will find support, real order book between $350 and $360.
Until then, be safe out there!
Astro Zan
