EWW: Bullish Setup

By: TheWaveTrading | Thu, Mar 20, 2014
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I have no idea regarding the long-term Elliott Wave Patter, but it does not matter since this is a short-term bullish setup

Reason: Completed a Bullish Falling Wedge

EWW Chart
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An Ending Diagonal occurs either in the final wave 5 of an impulsive sequence or in the wave (C) of a Zig Zag / Double Zig Zag

In this case in my opinion from the December high this Ending Diagonal has completed a Zig Zag.

What matters is that a falling wedge is usually followed by a sharp move in the opposite direction, which often retraces back to its origin which is located at 63.89

In addition to the" bullish" wedge we have a postive divergence of the MACD which is dispalying a bullish cross.

Yesterday´s Shooting Star is being neutralized by today´s likely Hammer hence probably from last Friday´s lod price should unfold at least a 3-wave up leg with a potential target in the range 62.67 (0.382 R) - 62.91 (Gap that can be filled). If this gap is filled the next target would be located at 63.89

I am long with a stop at 59.80

 


 

TheWaveTrading

Author: TheWaveTrading

TheWaveTrading

Contact: If you would like to contact the author, you can e-mail him at thewavetrading@gmail.com

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