The Centerline of the down sloping Fork is reached and now price found support.
A pullback to the L-MLH is possible, before price follows it's bigger SineWave to the downside.
Have to be careful here, because the Centerline could provide good support and the count from 0-5 to the upside is not achieved.
This means, that price could easily create a bigger up-part of the second SineWave, before going down further.
So how could we plan a trade in here?
I see two nice plays:
1. Going short at the L-MLH of the yellow Fork.
The Problem here is where to put your stop if you trade the Underlying. The second idea: sell a CallSpread on the pullback to the yellow L-MLH.
2. Wait for a confirmed P5
This needs more patient and the trade could leave the station without you too.
Because price broke down at the level of the two grey lines, building a zone, this would be my preferred play, waiting for a confirmation if price reach this level.
Let's put our observation Cap on...