There is an interesting situation on H4 time frame as the price, after a sudden sell-off, almost hit the golden channel lower trendline. This wave progression can still be considered as a wave (4) correction in shape or abc irregular flat, but any breakout below the golden channel and below the invalidation line at the level of 140.27 will result in main impulsive count invalidation. The alternate count then would suggest only three wave progression, so it would mean the wave 4 purple has not been finished yet. In that case next support for the price is at the level of 138.78.
Support/Resistance:
142.35 – Weekly pivot
141.25 – Technical resistance
140.83 – WS1
140.27 – Invalidation line
138.78 – Technical support
Trading recommendations:
As it has been advised yesterday: sell stop orders should be in play if the level of 142.82 is broken. If You still have this orders running in profit, then move the SL above the level of 141.31 and wait for next market move. Any breakout below 140.24 is a bearish continuation sign.
The material has been provided by InstaForex Company – www.instaforex.com
General overview for 14/03/2014 08:30 CET
There is an interesting situation on H4 time frame as the price, after a sudden sell-off, almost hit the golden channel lower trendline. This wave progression can still be considered as a wave (4) correction in shape or abc irregular flat, but any breakout below the golden channel and below the invalidation line at the level of 140.27 will result in main impulsive count invalidation. The alternate count then would suggest only three wave progression, so it would mean the wave 4 purple has not been finished yet. In that case next support for the price is at the level of 138.78.
Support/Resistance:
142.35 – Weekly pivot
141.25 – Technical resistance
140.83 – WS1
140.27 – Invalidation line
138.78 – Technical support
Trading recommendations:
As it has been advised yesterday: sell stop orders should be in play if the level of 142.82 is broken. If You still have this orders running in profit, then move the SL above the level of 141.31 and wait for next market move. Any breakout below 140.24 is a bearish continuation sign.
The material has been provided by InstaForex Company – www.instaforex.com
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