My second resistance at 130.60 did the job well and turned prices back down again in wave iii and we should be looking for 127.15 as the first target, but we should see more downside after a shallow correction towards 128.51 and maybe even 128.91 before the next decline to at least 126.57 and possibly even lower to 126.11, which should make the bottom of wave iii. That said we should remember, that target for this major wave 2 is at 118.73, where wave 2 will have corrected 38.2% of wave 1.
As it is typical for a wave three it just keeps moving higher and higher, leaving everybody looking for a correction with a loss. Even though this market seems overbought we should expect even more from it. As I expected is green wave v extending and we should look for a continuation higher towards 1.6739 as the top of green wave v and blue wave iii, but after only a shallow correction the next move higher will take place. It might be tempting to try and sell near 1.6739, but I can not recommend it, as we should not expect much of the next correction and therefore the risk of taking a loss is high and worse the risk of seeing the train leaving without you on board is equally high. Short term I'm looking for support at 1.6591 to protect the downside for the next swing higher towards 1.6739. Only a break below 1.6539 will indicate that we have seen the top of blue wave iii and blue wave iv is developing.
No comments:
Post a Comment