29 May 2013

So far the movements since the high on the 22nd has felt more like a corrective pattern than a impulsive one.  Today will mark another day of a reversal candle.  What does this tell us?  It shows an indecision on traders part as the trading range becomes smaller and smaller, so a break down or break up should soon be seen. 

If we are to count the top of May 22nd to the low on the 23rd as wave A or wave 1 then we should look for a consolidation sideways of an ABC or abcde pattern making a overall wave B, with a continued push lower for wave C or wave 3.

 If the Top of 22nd to the bottom of 23rd is counted as the start of an abcde then it is a bullish setup forming a triangle that becomes wave 4 and a push higher to wave 5 would be expected.

Mid-Term: DOWN
Short-Term: DOWN

Bearish Scenario...

Bullish Scenario...

Note: Regardless of EW possibilities, we still need to follow our MAIN trend...