The market has fully priced in the earlier signal formed by the initial diagonal triangle, which is viewed as wave a in a simple zigzag. Buyers resisted for a long time, doing their best to push the price higher. However, their efforts were not enough to update the high. As a result, the price plummeted sharply.

Thus, wave c is likely almost complete. For it to fully form, a couple of internal waves are still needed — one corrective and one impulsive. However, the potential for further decline appears limited, so it’s advisable to start closing previously opened short positions.

Looking ahead, buying opportunities may arise, but until wave c is fully formed, it’s not recommended to look for entry points for long positions.

Recommendation: FLAT.