Daily Analysis

By: TheWaveTrading | Wed, Jan 11, 2012
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Today I don't have much to add to what I have been discussed in my last 2 posts. I am on a wait and see mode, for clues that may validate or kill the Ending Diagonal project.

So far it looks ok as long as the current wave (III) establishes a top below 1310.44

Then the following pullback; wave (IV) will have to:

Hence at the moment I maintain it as the preferred scenario.

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For the immediate time frame given the fact that the initial structure of yesterday's pullback is corrective, I would not rule out that price is willing to go higher maybe within a Triple ZZ wave (III), therefore, as long as price does not lose the 1285 area and breaches the rising trend line, price could have another push higher.

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We have s/t overbought indicators such as Tick at 918 while CPCE is dropping to extreme zone. Both are warning that a s/t top should not be too far off.




Author: TheWaveTrading


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