I have been asked to do a follow-up on my former post: http://theelliottwavesufer.blogspot.com/2010/09/polish-wig-index.html.In my former post I said that I expected one more new high closer to 46,237.77. Closer to the middle of the channel (the gray line). Yesterdays high was 46,238.49, this new high was followed by divergence on the RSI indicator (see the chart below). It also looks like some kind of five legged C wave ended at that point.
Whats needed now is a break below 44,245.12 and more importantly a break below 41,451.23 to confirm the top.
Stepping down the time frame to the hourly chart (see below). We can see that the top of the rising channel was tested and slightly broken yesterday and the following decline does have a impulsive look over it, but to be sure we need more evidence.The break below the gray rising channel also adds confidence in a possible top being in place, but a break below the 44,245.12 support would really add confidence in the top scenario.
I would consider sell the WIG 20 here as the risk/reward seems pretty nice here, with a stop just above the top at 46,238.49.
Thanks, I enjoy your posts - they're really great and much appreciated :)
ReplyDeleteIf you are happy to follow up on some of your previous posts I'd love to hear what you think about the action in the AUD/USD (since we thought it was so close to topping out it's gone parabolic with crazy new highs that present a challenge for a new count!).
Love to hear what your thoughts are about the bigger picture wave structure for this pair these days!
Thanks again,
J