With the break below 121.83 my bullish count was invalidated and at the same time telling me, that wave ii of 5 is still ongoing. We expect resistance at 124.09 to protect the upside for one last decline towards 120.66 before this zig-zag combination is over and wave iii of 5 will be ready to take over. That said, a break above 124.86 will clearly ease the downside pressure and indicate a new rally towards 126.04, but we need a break above here to confirm, that wave iii of 5 is well under way already.
The correction from 1.5454 has been larger that we anticipated, but we should be close to a top here in the 1.5623 - 1.5650 area for a break below 1.5575, which indicates that wave C down towards at least 1.5390 and ideally down to 1.5200 is well under way. As long as support at 1.5575 protect the downside we must accept a move closer to 1.5650, but any break above 1.5709 will be a warning that wave e could have fallen short of it's ideal target, while a break above 1.5770 will confirm that a call for a new rally higher.
Hi EWS when we look at wave V and looking for price projection do we take fibo from bottom of wave i to top of wave iii and take 38.2 level then do we place it on top of wave iii to get projected level for wave v
ReplyDeleteBest Regards JT
Hi JT,
ReplyDeleteWhen making the projection of wave v you meassure it from the end of wave iv and not the top of wave iii, but all the rest is spot on ;o)
Kind regards
EWS
Thanks EWS lots of questions to ask you as we go along talk soon
ReplyDeleteBest Regards jt
Hi EWS, how would you count the recent drop in Facebook. The drop looks impulsive and I'm not sure how to count it in the context of the ABC decline. HFM.
ReplyDeleteHi HFM
ReplyDeleteYes the correction has become slightly deeper than my ideal target, but we need a break below 23.37 to invalidate the bullish count.
Therefore I would look for a break above 26.50 to ease the downside pressure and a break above 26.89 to confirm the bottom indicating that wave 5 has begun.
Kind regards
EWS
Thx!
ReplyDelete