The break of the contracting triangle shown above forces a wave recount. It appears that only wave 1 2 and 3 are in so far and this extended retracement is the forth wave. The good thing about this price action is that according to the Elliot wave breakouts from contracting triangles tend to be impulsive and also terminal waves, so if we can find the bottom, we will have a very good entry point. So far we have no indication of a bottom and instead are looking at the possible targets. Using fib extensions, we have defined two possible targets. Elliot wave also says that fourth waves tend to end at the 4th wave of the previous 3rd wave.