While investors are wavering weather the corrective rebound off the June 4
low is over or if this move belongs to the initial stage of a new uptrend,
I am in the camp of considering that price is unfolding a Double Zig Zag, hence
if my short term scenario plays out there is one more pending impulsive or
ending diagonal wave (c) that will establish the top of the countertrend rally
wave (B). Hence once the wave (B) is in place I expect the resumption of the
intermediate down trend with a wave (C) down. This assumed down leg that should
extend into August may be the candidate to establish an important bottom.
The good news is that the majority of European & US indices are synchronized
as they are unfolding the same EWP from the June 4 low; hence we have a wave
(B) in progress across the board.
Lets go to the IBEX chart and the Double Zig Zag option.
If price is unfolding a Double ZZ then we need a 7 -wave up leg = (ABC=W;
X; ABC=Y) then price is now involved in establishing the wave (B) of the second
Zig Zag
The wave (B) has to establish a bottom in the range 6895 - 6770 or it MUST
not breach the rising trend line support.
Once the wave (B) is in place I expect the last wave (C) up that will complete
the corrective rebound off the June 4 low.
The equality target for the wave (Y) is at 7484 but since the internal structure
of the rebound could be shaping a bearish rising wedge probably the pending
wave (C) could top in the range 7305 - 7373
The April 18 gap down at 7373,3 where we also have the 100 d MA could be
the "sweet spot" for the top.
Contact: If you would like to contact the author, you can e-mail him
at thewavetrading@gmail.com
The main objective of this project is to share my views on several markets
and asset classes.
In the initial stage TWT website will be a free service.
My main focus will be the equity market with SPX being the leader but I will
also follow US equity sectors, major European indices, fixed income, currencies
and commodities markets.
My analysis is based upon traditional Technical Analysis, Elliot Wave guidelines
and investor sentiment.
My goal is to establish the most likely path that the price of a particular
asset will undertake and profit through ETF instruments both on the long and
short side and mainly with leveraged ones (2 x & 3 x).
The advantage of ETF investments is that it allows getting involved in equity
indices & sectors, currencies, fixed income, commodities etc.
Therefore the main purpose of TWT will be to establish investment strategies
regardless if the market is in an up trend or in a down trend, leveraging
the chosen scenario while managing the risk by establishing protective stop
losses.
Hence I will always define the risk, I will try to let winners run the wave
and I will cut the losses if my strategy is wrong.
Disclaimer: The content of this article is for educational purposes
only, the information supplied is not a recommendation to buy or sell any
security or financial instrument.
Thewavetrading.com nor the owner can not be held responsible for any loses
occurred from the information provided within the website.
The Information supplied cannot be copied or reproduced without the permission
from the owner.
Circle Us