As seems evident from the chart posted above, the decline from the wave i(circle) top seems corrective, infact it has broken out of the corrective price channel which signals that the correction is over and the uptrend is back in force. Infact if this count is indeed accurate the upcoming third wave rally shall prove to be a prolonged parabolic explosion. Now what has made me come to such a conclusion? Well several factors.
Factor 1: We had a leading diagonal first wave which signals an extended third wave to come.
Factor 2: Notice how as the wave C of wave ii(circle) made a new low on the price chart it formed what looks similar to a double bottom on the oscillator. Which seems to have been broken to the upside.
Factor 3: An inverse head and shoulders pattern has formed on this 3 hour chart. In an inverse head and shoulders usually the neckline is sloping downwards. However on rare occasion the neckline is sloping upwards, which signal underlying strength in the market. The 'unusual' strength in the market is usually highlighted by a smaller right shoulder relative to the left shoulder which was the case in this particular market.
Note: The wave 2 declined into the 61.8% retracement of wave 1 ofcourse a typical target for the end of a second wave decline. ALT count: Still in a wave ii(circle)
Regards,
Ahmed Farghaly
P.S. As for the EUR/USD I'm going to let you do the math.
Hint: View Count 3 on the EUR/USD pair posted in late april.
No comments:
Post a Comment