We did see resistance at 129.91 protect the upside for a break below 128.98, but there was no real follow through. However, something will have to happen soon. As we are moving closer to the apex of two converging lines and one of them must giver away for the next powerful move. I still think, that this next powerful move will be to the downside, for a move down to the strong support at 124.96 and likely even lower. That said, we must stay alert to a break above 130.43 and more importantly a break above 130.56 as that would call for a rally back to the 133.81 high in a very complex correction.
With a low at 1.6441 (just below my expected support at 1.6445) and the following clear break above the resistance line of the falling channel from the 1.7113 higher, we had the confirmation we needed to say, that the triple zig-zag correction was over. We should now turn our focus towards the upside again for the next big rally higher. Short term I'm looking for support at 1.6620 and we might just see a move lower to 1.6577, before the next impulsive rally higher towards 1.7049 as the next target, followed by a break above the former high at 1.7113. My long term count calls for a rally towards at least 1.8700 and likely even higher towards 1.9570.
Hey EWS
ReplyDeleteThanks for all the great posts this week been an REAL education in how to read the charts Oil. EUR/NZD.EUR/JPY Better than any book i have got lost in keep up the Great work.
Have A Great Weekend (Give That Big Brain of yours a rest Lol)
Best Regards Jt
Hi JT,
DeleteThank you very much.
I have been away for the week-en so I got a lot of rest. Hope it was new fuel for the brain...
Hope you had a great weekend too!
Kind regards
EWS
Wave 3 on sunpower?
ReplyDeleteHi Todd,
DeleteI would like to see the EWO-indicator confirm, that we "only" are in wave 3, but a couple of days move with a continuation higher would likely do the trick.
It's more likely a wave 3, that an extended wave 5.
Kind regards
EWS