The resistance of yesterday seems strong enough
Wave 4 is probably done by now, as the reverse from the resistance zone ($10,985-$11,065) is underway.
The most probable scenario is the development of wave 5 that should take the prices to the previous lows of 4th of October (10,400). However, there two supports at 10,800 and 10,700 that are standing in front of another move down.
The main resistance is still in the same area (plotted in the chart) as yesterday and we could witness a second retest before the decisive break.
On a shorter time frame I plotted a rising wedge to incorporate the most recent price action. This pattern is a high probability of indicating a down move and the support zone is set at 10650-10,800 area (fibonacci levels).My call is that we will hit the previous lows as we are currently in the 5th wave and this rally seems to have a corrective look.
However, the mid way down (the support area mentioned above) could turn out to be a strong support and reverse the price towards new highs (above 11,000); in this case we could label this past rally as a wave 1, the first wave of a 5 wave move up.
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