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

PAYPAL

Tuesday, 17 February 2015

17 Feb 2015 - Intra-Day Ending Diagonal

Market is still in OB territory which does nothing to suggest there is a bear trend coming soon.  There is however a ending diagonal triangle forming and could retrace down but how far how long.  The key here is to figure out whether this pull back would form enough of momentum to change the larger time-frames direction.  The intra-day chart needs to push below the OS range to get us either a reset for larger moves higher.  The only time an OS becomes bearish is if the signals stay in the range for an extended period of time.

An EW option here would be a high marked as a B-Wave (green).  This longer term is bullish even if a C-wave is to come.  The other alternative would be if this current move up is made to be a 5th wave of an ending pattern, but so far the pattern if it ends here would be complete to be called 5 waves up.

MT: UP
ST: UP
PA: NA

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