11 Apr 2014

More questions than answers on my part.  The length of move from this weeks top is equal to the one made the previous week.  This normally is not an issue but the fact we are trying to label the top as in, makes the move the last 2 weeks seem like an ABC pattern.  Why?  Well usually 3rd waves are a lot longer.  The other option would be that this is a 1-2 1-2 count.  But lets not get ahead of the price pattern.  For all we know the down trend has not finished and could push much lower.

We are oversold at the moment in the intra-day chart which means that the risk of acceleration is to the downside.  But the daily chart has not pushed to the oversold range despite the move in prices. 

Based on my chart, we are at a critical level and any bullish sentiment must hold prices in this area or risk a breakdown in confidence and price.  For now I have labelled these moves down as abc and is subject to change.  Our indicators are clearly bearish though.

MT: DOWN
ST: DOWN
PA: DOWN