SUMMARY
Melon (MLN/USD) pattern of downward wedge is quite steep. The retrace has thus far exceeded the 0.78 Fibonacci zone and yet it's still not complete. The wave mapping shows the blue abcde with all but wave e being complete. Even if there is a breakout, price and time can be extended through sideways action. Still, the steepness of the wedge often indicates a potential for a sizable breakout. If measured in percentage of move, it could be significant.
The subwave closeup shows that the final abc subwaves of the blue E wave will probably require an incremental lower low. This would still not set a lower low from prior lows before the wedge formation. Whether trend reversing or not, once this wedge pattern completes, a breakout is probable.
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