Once in a while a wave pattern shows itself, which is the perfect time to take a look at the bigger picture. After I looked at the Tesla zigzag, and then saw the same pattern in our Canadian dollar bullish phase, then this bull market has a good chance of being in a diagonal 4th wave rally.
The A5 wave in our dollar is the exact same looking pattern as the A5 wave in Tesla. Could it still be a “D” wave? I will not rule it out as I like to keep a few options on the table. My bet is that this “C” wave bull market will have a bigger recognizable wave structure, that would alternate with the “A” wave. In zigzags it is the “A” wave that can be very steep and the “C” wave would have more subdivisions, reducing the speed of the decline and its angle.
In flats this is usually reversed, as the C wave would be the steepest part.
Alternation is the name of the game, as the pattern never repeats itself completely. How high could this go? It seems like 94 may act like a brick wall, as the 93 price level would start to interfere into wave 2 in Intermediate degree. Technically the 4th wave can dip into wave two if it wants to, but then we would need for a zigzag crash to follow. At 89 we would be getting close to the top trend line of the zigzag, but we know it can squeak past the trend line with ease.
If you look at the Tesla “A” wave and the CAD “A” wave, then you have two pictures of the same pattern, which can be used as a reference, to look for other “A” waves just like it.
From what I see, I you would have to stay bullish on our Canadian dollar. Of course the higher it goes, it will start killing our manufacturing industries. The 62 price level is the ultimate bottom, so this would be a critical price level to watch, a few years into the future.