“Those who have knowledge don’t predict. Those who predict don’t have knowledge.” Lao Tzu, Chinese philosopher, 6th century BC

PAYPAL

Wednesday 20 March 2013

PCLN

PCLN looks to be ripe and the diagonal that ended the top seems to be of the right pattern to start the new trend down.  EW practitioners are always looking for these types of setup for that "Sure Thing".  Well at least a better risk trade for sure.  Notice we have 5 waves, each with a 3 wave pattern.  This type of pattern along with a diagonal often signals an end.  Notice also that wave E never touched the top of the diagonal trend line.  This is also typical.  The next move is down and from the looks of it 440 would be my target.

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