My preferred count still is that we are in some kind of falling diagonal. If this count is correct we must not see a break above 146.95 as wave would make wave D bigger than wave B (see the light green lines), which is not allowed. Notis that the new high was not confirmed by the MACD indicator creating a negativ divergence. Making the smaller wave c at 138.61 the higste point at the MACD indicator. This is exactly what we will be looking for if we are to find an important top soon.
Zooming in on the final part of the rally from 128.71. With Firdays rally to 144.88 all demands is now fulfiled. We have a five wave rally from 134.26. The possible ending diagonal from 140.05 has done everything rigth. Finally we have an overthrow in both the ending diagonal and the the resistance-line of the pitchfork.
Zooming in further on the five minute chart and the rally from 142.40. We again can count a finished 5 wave rally, what's needed is a break below 144.38 and more importantly a break below 143.81, which will confirm that the top is in place. As long as 143.81 isn't broken to the donwside we could still see one more minor rally 145.25-145.50, but it's not the preferred micro-count at this point.
My preferred count still is that we are in some kind of falling diagonal. If this count is correct we must not see a break above 146.95 as wave would make wave D bigger than wave B (see the light green lines), which is not allowed. Notis that the new high was not confirmed by the MACD indicator creating a negativ divergence. Making the smaller wave c at 138.61 the higste point at the MACD indicator. This is exactly what we will be looking for if we are to find an important top soon. 
Zooming in on the final part of the rally from 128.71. With Firdays rally to 144.88 all demands is now fulfiled. We have a five wave rally from 134.26. The possible ending diagonal from 140.05 has done everything rigth. Finally we have an overthrow in both the ending diagonal and the the resistance-line of the pitchfork. 
Zooming in further on the five minute chart and the rally from 142.40. We again can count a finished 5 wave rally, what's needed is a break below 144.38 and more importantly a break below 143.81, which will confirm that the top is in place. As long as 143.81 isn't broken to the donwside we could still see one more minor rally 145.25-145.50, but it's not the preferred micro-count at this point.
Hi EWS,
ReplyDeletehope all is well with you. Thank you very much for your very good analysis.
One remark:
"if this count is correct we must not see a break above 146.95 as wave would make wave D bigger than wave B "
That depends:
in a contracting diagonal or a contracting triangle that is true. In the expanding varieties the D wave or wave 4 is longer than the B wave or wave 2.
Best to you and many green pips,
Markus
Hi Markus.
ReplyDeleteThank you. I'm well an fit. Hope all is well with you too.
Yes that's a possibility too ;o)
Best reagrds
EWS