I believe that IBB is still in its correction that it started in 2015. After a rather quick wave A in 2016, IBB started a complex wave B that is about to complete. The channel, that is baselined on waves 2 and (ii) bottoms, should be a resistance point for wave (c) of B that has possibly 5-10 points to go. Once the wave bounces off the channel line, I am expecting wave C of 4 that could target the following areas:
1. 0.618-1.618 fibs of wave A (running or expanded flat) – 116-63 – blue rectangle
2. 0.236-0.382 retrace of wave 3 – 106-90 – purple rectangle
3. 0.786-1.0 fibs of wave A (regular flat) – 107-96 – red rectangle
4. support at wave (iv) of a lesser degree – 91-69 – green rectangle
5. lower boundary of the channel (slope of C = slope of A) – 64-63
Wave 4 would be better estimated after the first subwave is complete. At this point, the possible range is rather wide. And let’s believe that wave C does not take a shape of an ending diagonal.