Transcription
In the last Lunacy video, we talked about the significance of holding this next key support level, which was the 78.6% retracement for a continuation and a wave five to the upside. That is exactly what's happened, guys. We've had a bounce from the 78.6. We've had a double bottom at the 78.6. What's likely to happen for Lunac going forward? Let's jump into the charts.
And just a recap of the last video. What we're looking for is a fivewave move here. So, this is the wave one. This is the pullback of wave two. This is the big wave three. This is the wave four and then we're looking for a wave five. That's what we're trying to catch a wave five if it happens like that. So what we were looking for is a buildup of structure around this level and then some kind of area where we got an idea some kind of indication that this 78.6% retracement which is sitting at I'll get rid of the zeros 3684 was going to hold as support.
So we've had something which was a double bottom. So we've had a double bottom. This has been reclaimed. And one thing if you just zoom in here you can see from these candlesticks one two three days of bearish price action has been pushed back by one bar of bullish price action. This is the daily chart. So the bulls have regained confidence. The balls have start entering the market back at this level at the 78.6% retracement and we've had a bounce on the day so far of 13.66% on Lunacy. So, it's looking good, right?
Resistance barriers. I'm going to show you extension levels very shortly, but look, let's look at resistance barriers first. So, the 61.8% retracement. We went through there like a hot knife through butter. The bears were in control. This is going to be a resistance barrier going forward. And this is going to be, remember, get rid of the zeros. 4 6 1 0. So, that's going to be resistance. And remember, clues look left. Was that a barrier of area? Sorry. Was that an area of support or resistance previously in the past? So, we push it on there and you can see that yes, this was a magnet as far as price was concerned. We got clear clear clear rejection at this level. So, we understand taking back the 61.8% retracement at 4610 is going to be bullish in the short term. Holding this level as support is going to be even more bullish. So, that's what we need to look at in the short term over the coming days, over the coming weeks.
So, fib extension levels. So, we knew that this was a 1618. Let's stick this back on here just to show everyone these fib extension levels work all the way to the top of that swing, then all the way back down. You can see that that was a 1618. This is good because wave three can't be the shortest wave as far as Elliot waves concerned for us to get the big wave five. As far as probabilities are concerned as well, look at this, the 1618. So, we got a rejection exactly to the T of the 1618. And we're going to do exactly the same thing for projections going forward if we start taking back these levels as support. So, fib extension this time from this low here all the way to the high then all the way back down to this low. And what we're looking for is 1272s and 1618. Right? 1272 sat all the way up here. Let's stick that on there.
Now, what can you see here? 0 00001. This is going to be a key psychological barrier to overcome. You've got your equal measured move here. This is if we put in new highs. If we take out this new higher high, reclaim that area of support, then you're looking for extensions. So that's 0 point loads of zeros 9311. If we got a big 1618 again all the way up here, 0.000012839. So there the extension levels using Fibonacci. However, there's caveats. We need to start taking back these levels. This is strong bounce. That's strong. We need to take back the 61.8% retracement. We need to hold that as support before we get a continuation to the upside.
So if you did get any value from this video guys and you do want to be a part of my journey during 2026, because that's my promise to you. I'm going to be here all of 2026. Subscribe to the channel.