CDSL: Corrective Drop Ending, Setup for Wave C/3 Rise

The decline from 1828.9 is unfolding as a 3-wave corrective move, likely Wave B/2 of a larger bullish sequence. Price is now testing the 0.5–0.618 retracement zone (1438–1346), which aligns with typical B/2 termination levels.

Notably, the rally from 1047.4 → 1828.9 unfolded in a clear 5-wave impulse, confirming it as Wave 1/A of a new sequence. By Elliott Wave guidelines, the present correction is setting the stage for another 5-wave advance once complete.

RSI has failed to make a fresh low while price pushed lower, creating a bullish divergence — a classic signal that downside momentum is fading.

Trade Plan

• Entry Zone: 1438–1346
  
• Watch for: Bullish price action or reversal signals before taking long positions
  
• Stop-loss: Below 1346
  
• Target: Retest of 1828.9, with potential for higher extension if Wave 3 is confirmed
  

Disclaimer: This analysis is for educational purposes only and does not constitute investment advice. Please do your own research (DYOR) before making any trading decisions.