The blue wave (b) turned up to be a ZigZag correction to the upside instead of a simple abc purple that I labeled last Friday. Now it looks completed and another leg down in this corrective sequence may be in progress. The gap that traders can see is a weekend gap and it will act as a resistance for the price. Only a sustained breakout above the gap would challenge the recent swing high. The golden trend line breakout is the first clue that the downside wave progression in order to complete wave (c) blue will continue. The first downside target is 61%Fibo at the level of 138.14.
Support/Resistance:
137.58 – WS2
138.14 – 61%Fibo
138.66 – WS1
138.80 – Wave (a) low
139.45 – Intraday support
139.87 – Weekly pivot
140.04 – 140.44 – Gap
140.95 – WR1
Trading recommendations:
Sell stop orders should be opened from the level of 139.44 with SL above the level of 140.05 and TP at the level of 138.80 and 138.14.
The material has been provided by InstaForex Company – www.instaforex.com
General overview for 03/03/2014 08:40 CET
The blue wave (b) turned up to be a ZigZag correction to the upside instead of a simple abc purple that I labeled last Friday. Now it looks completed and another leg down in this corrective sequence may be in progress. The gap that traders can see is a weekend gap and it will act as a resistance for the price. Only a sustained breakout above the gap would challenge the recent swing high. The golden trend line breakout is the first clue that the downside wave progression in order to complete wave (c) blue will continue. The first downside target is 61%Fibo at the level of 138.14.
Support/Resistance:
137.58 – WS2
138.14 – 61%Fibo
138.66 – WS1
138.80 – Wave (a) low
139.45 – Intraday support
139.87 – Weekly pivot
140.04 – 140.44 – Gap
140.95 – WR1
Trading recommendations:
Sell stop orders should be opened from the level of 139.44 with SL above the level of 140.05 and TP at the level of 138.80 and 138.14.
The material has been provided by InstaForex Company – www.instaforex.com
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