If you evaluate the Elliott Wave count, the current formation is most likely a Wave 4 of a broader Wave 3. This means there is still one more wave to go and based on the current trend (or impulse structure) that would be Wave 5 which can push to a new high.
The wave count helps to formulate reasonable expectations based on market proportions but it is not a requirement in order to gauge reward/risk. Trend and support/resistance variables are just as effective when it comes to looking for a high probability swing trade idea.
There are multiple instances of long candle tails off of the 28 to 29K area. This further confirms that the 27.5K level is the major trend support that needs to stay intact in order to expect this trend to continue (test of high or higher high).
At the moment, there is an inside bar developing around this multi support area. If the current candle closes as an inside bar, then based on its current location, we will be prompted to share a new swing trade idea long. The reward/risk is most attractive at current levels in light of the potential break out that can follow.
If you would like to know more about how our swing trade strategy works, visit our website: https://bit.ly/marketsignals
We have a 7 day free trial for our signal service as well as a free membership where you can ask questions in our chat.
Thank you for considering my analysis, I hope you found it helpful.