First thing to note. Composite Index indicator correctly signals a notable correction when RSI fails to do so.
Fibonacci retracement is drawn from 'START' and ends at END1, END2, END3. So, there are multiple retracements, but all of them start from the same starting point. This is done to get fibonacci confluence zone (those overlapping fibonacci ratios). If you look closely, the starting point is a bit higher than the secondary pivot. That's because I chose the bar that really started the big moves.
Fibonacci analysis requires you to really read price data. It's not as simple as slapping your mouse choosing obvious price highs and lows.
I have met several fibonacci analysis that claim confluence zones, but they use different starting points everytime they draw retracement. I don't think they understand what they are doing either...
Moving on, you may have noticed the confluence zones are all above AALI recent high. That's because I believe AALI would go higher eventually without breaking the starting line, so I'm searching higher resistance. Here is a much more clearer picture.
What if AALI went down further? Where are the potential significant supports? Let's find fibonacci confluence zones below current price. No more words, just charts now.
I don't think 11200 won't be possible. I said that because I believe AALI is now in the middle of a third wave. Of course, if AALI reached 11200, the wave interpretation will be invalid.
Always look to the left after you identify a possible impulse wave. You don't want to be trapped in wave C. Many Elliott Wave analysis I have encountered neglect the structure to their left. Simply labelling 1-2-3-4-5 without connecting the dots will get you in a lot of trouble. That's hard you say? Who says Elliott Wave is easy? Haste makes waste.
I have identified a decent 5 wave down to the left. That's enough to make an educated guess that AALI is quite possibly in the middle of an impulse wave. It is likely the identified confluence zone at 13600 is where wave 3 ends.
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