SUI Price Analysis: Has a Low Finally Formed? New All-Time Highs Incoming?

Summary

In this video update on SU, the speaker analyzes the price movement around key support levels and discusses the formation of a potential market low. They explore the significance of a five-wave move up followed by a three-wave move down, as well as the importance of confirming a low through proper wave structure. The speaker emphasizes the necessity of a healthy third wave, potential price levels for future resistance, and outlines scenarios for both bullish and bearish market movements. The update concludes with a call to action for likes, comments, and channel membership.

Takeaways

• 😀 The price has reacted nicely to the $242 to $244 support area, which was identified as a key level due to the overlap of the 100% extension and 61.8% retracement.
• 😀 The important question is whether the current price reaction is strong enough to confirm that a low has formed, rather than just assuming where the low might be.
• 😀 Micro support levels are identified as the first line of support, helping distinguish between short-term bullish and bearish momentum.
• 😀 To confirm that a low has formed, the chart requires a five-wave move up followed by a three-wave move down.
• 😀 The current wave structure has three waves up, and the potential for a healthy third wave is suggested if it reaches a 138% extension or higher.
• 😀 The ideal scenario involves seeing a wave four move sideways, potentially reaching around $265 before moving higher and confirming the low.
• 😀 If five waves up are completed, the next resistance levels to watch are $315 to $316 and $360.
• 😀 If there are not five waves up, a failure in this pattern could lead to a fall back to the $29 support level.
• 😀 A potential bearish scenario involves an ABC structure, and if support breaks but price recovers, it could suggest a larger three-wave move, potentially leading to a decline.
• 😀 The script emphasizes the importance of price action and the need for careful monitoring to confirm the formation of a low, with a focus on the potential of five-wave moves leading to rallies.

Q & A

What key levels are mentioned as important for the price action in the script?

The key levels mentioned include the support area around $242 to $244 and the resistance levels at $315 to $316 and $360.

What is the significance of the $242 to $244 area in the chart?

This area is important because it marks the overlap of the 100% extension and the 61.8% retracement, which acted as a strong support or 'magnet' for the price.

What is the main question being asked about price action in the script?

The main question is whether there has been a meaningful enough reaction to confirm that a low has formed in the market.

How is 'micro support' defined in the script?

Micro support is described as the first line of support, which helps distinguish between short-term bullish and bearish momentum in the market.

What is the criteria for confirming a low has formed?

The criteria for confirming a low is the completion of a five-wave move up followed by a three-wave move down, which would indicate the formation of a low.

What is the importance of the five-wave move in the analysis?

A five-wave move is important because it signals a strong upward momentum, and when followed by a three-wave correction, it confirms a valid low formation.

Why is the third wave critical in confirming the market's trend?

The third wave is considered critical because if it reaches a 138% extension or higher, it confirms the third wave as healthy and helps validate the formation of a low.

What could happen if the five-wave move is not confirmed?

If the five-wave move is not confirmed, the price may fail to show upward momentum, potentially resulting in a drop back to the $29 support level.

What does the script suggest would happen if the price does not follow the ideal pattern of five waves?

If the price does not follow the ideal five-wave pattern, it could lead to a larger three-wave structure (ABC), with a potential drop after breaking support.

What was the significance of the micro five-wave move mentioned in the script?

The micro five-wave move mentioned indicates the power of such moves in driving price rallies, even when the move itself is small. It highlights the potential for larger rallies if the five-wave structure plays out properly.