Alternate count is in play, where wave c green of wave (b) blue must be finished before more downside will be in play.
The price is above the Weekly Pivot and the current resistance level is at 134.87, which is in confluence with blue intraday down sloppping trend line. The target level for wave c green is SUPPLY zone at 135.08 – 135.16. This zone is in confluence with One-to-One market geometry level of equal legs: a=c (green). Please notice that if this zone is broken to the upside, the immediate test of the recent high is in view.
Small weekend gap acts as a intraday support now – the level is 134.52. Break of this level would put the navy trend line to test somewhere the area of 134.00.
Please notice that this last wave to the downside, wave (c) navy, must develop in five impulsive waves to confirm the current wave progression. A failure at this point would mean that correction might get more complex and time consuming.
No visible divergence yet.
Support/Resistance:
135.49 – Swing High
135.08 – 135.16 – SUPPLY ZONE
134.89 – Intraday Resistance ( weak)
134.59 – Weekly Pivot
134.52 – Intraday Support ( gap)
133.87 – Intraday Support
133.69 – WS1
133.60 – Technical Support
132.99 – Target Level for wave (c)
Trading recommendations:
Due to unfinished cycles on higher time frames the bias is to the downsiade to complete the wave (c) navy of the corrective wave (ii) green.
Entry level is SUPPLY ZONE, SL is above 133.48 and potential TP is 133.00. R/R for this trade is 7:1.
The material has been provided by InstaForex Company – www.instaforex.com
General overview for 28/10/2013 10:00 CET
Alternate count is in play, where wave c green of wave (b) blue must be finished before more downside will be in play.
The price is above the Weekly Pivot and the current resistance level is at 134.87, which is in confluence with blue intraday down sloppping trend line. The target level for wave c green is SUPPLY zone at 135.08 – 135.16. This zone is in confluence with One-to-One market geometry level of equal legs: a=c (green). Please notice that if this zone is broken to the upside, the immediate test of the recent high is in view.
Small weekend gap acts as a intraday support now – the level is 134.52. Break of this level would put the navy trend line to test somewhere the area of 134.00.
Please notice that this last wave to the downside, wave (c) navy, must develop in five impulsive waves to confirm the current wave progression. A failure at this point would mean that correction might get more complex and time consuming.
No visible divergence yet.
Support/Resistance:
135.49 – Swing High
135.08 – 135.16 – SUPPLY ZONE
134.89 – Intraday Resistance ( weak)
134.59 – Weekly Pivot
134.52 – Intraday Support ( gap)
133.87 – Intraday Support
133.69 – WS1
133.60 – Technical Support
132.99 – Target Level for wave (c)
Trading recommendations:
Due to unfinished cycles on higher time frames the bias is to the downsiade to complete the wave (c) navy of the corrective wave (ii) green.
Entry level is SUPPLY ZONE, SL is above 133.48 and potential TP is 133.00. R/R for this trade is 7:1.
The material has been provided by InstaForex Company – www.instaforex.com
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