The current wave progression still has not ruled out the possibility of a more complex and time-consuming corrective wave 2 black as the current downward impulsive wave might still be a part of an alternate count. Wave alt:(b) blue would be here a three wave corrective wave just because the possible triangle in wave b purple of this progression is very characteristic of corrections and not of an impulsive wave. This is why I still keep in mind and on the chart that possibility that if alternate count is correct, then the market should break out from the red descending channel above the weekly pivot and try to test the highs of the wave 2 black (alt:(a)). Any failure of such a wave progression would result in more shallow corrective cycle here and the downside will continue to hit the lower price targets.
Support/Resistance:
137.65 – WS2
138.14 – Wave b purple Low
138.31 – WS1
138.58 – Intraday Resistance | Key Level |
138.80 – Weekly Pivot
139.35 – Wave 2 High
Trading recommendations:
Daytraders should consider opening a buy stop order if the level of 138.60 is broken, with SL below the level of 138.41 and TP at the level of 138.80 with a possible extension to the level of 139.35.
The material has been provided by InstaForex Company – www.instaforex.com
General overview for 29/05/2014 08:30 CET
The current wave progression still has not ruled out the possibility of a more complex and time-consuming corrective wave 2 black as the current downward impulsive wave might still be a part of an alternate count. Wave alt:(b) blue would be here a three wave corrective wave just because the possible triangle in wave b purple of this progression is very characteristic of corrections and not of an impulsive wave. This is why I still keep in mind and on the chart that possibility that if alternate count is correct, then the market should break out from the red descending channel above the weekly pivot and try to test the highs of the wave 2 black (alt:(a)). Any failure of such a wave progression would result in more shallow corrective cycle here and the downside will continue to hit the lower price targets.
Support/Resistance:
137.65 – WS2
138.14 – Wave b purple Low
138.31 – WS1
138.58 – Intraday Resistance | Key Level |
138.80 – Weekly Pivot
139.35 – Wave 2 High
Trading recommendations:
Daytraders should consider opening a buy stop order if the level of 138.60 is broken, with SL below the level of 138.41 and TP at the level of 138.80 with a possible extension to the level of 139.35.
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