FCPO. REJECTION AT 38.2%.

Following the guidelines in Elliott Wave Theory, "The Right Look" we adjust our wave labeling because the proportion of wave 4 is too large to fit within the subwave structure.

It is a good sign that the price is rejecting decline at the Fibonacci 38.2% level.

Our focus now is on the development of Wave 5. The last wave to complete the Motive cycle.

Invalidation for this idea is at 3872.

Refering to Elliott Wave rules for Wave 5:
"Wave 5 always subdivides into an impulse or a diagonal"

We would expect rallies toward the 4000 area in a classic motive wave structure.

Another possible scenario to consider is the truncation of Wave 5, given that Wave 3 is an extended wave. Truncation happen when Wave 5 fail to move beyond the extreme swing high of Wave 3

Bottom line:
If Wave 4 has ended and Wave 5 is in the early stages of development, any retracement is limited to the 3872 level. Trading below this level will require reassessment of the wave structure.