UPRO: Bullish Setup

By: TheWaveTrading | Sat, May 10, 2014
Print Email

Entry Date: 05/29/2014; Long 100.37; Stop: 98.35; Target: 107.90 +/-

Reason: Price should have completed a Triangle

In my last update of SPX on May 4 I discussed three potential short term Elliott Wave patterns. Today the Triangle option is the frontrunner.

It is probable that at Friday's lod price has concluded the bullish pattern. If this is the case the structure of the advance from the April 11 low is suggesting that price has concluded a Triangle wave (B) hence the pending thrust higher is a wave (Y) that will complete the Double Zig Zag and in addition it should conclude an Ending Diagonal which began to be formed at the October 2013 low.

If the Triangle pans out the theoretical target of the pending wave (Y) is located at 107.90 +/-.

UPRO 60-Minute Chart
Larger Image

The positive clue is that last Friday's lod was established at the 200 hr ma.

The caveat, as we can see in the SPX 15 min chart below, is that from the lod the rebound does not look impulsive unless price is forming a Leading Diagonal (Keep in mind that a wave C has to unfold an impulsive sequence)<./p>

For this reason I have decided to lower my stop below the lower contracting trend line, in case the wave (e) is not in place yet.

SPX 15-Minute Chart
Larger Image

If the kickoff of the assumed wave (Y) is solved with an impulsive sequence the daily Hammer candlestick with the bottom of the tail at the 20 dma is strongly suggesting that a breakout would be imminent.

UPRO Daily Chart
Larger Image

In addition since a Triangle occurs prior to the final actionary wave of a larger degree pattern it would strongly strengthen the scenario of the Ending Diagonal since the pending thrust higher would conclude the last wave (V).

UPRO Daily Ending Diagonal Chart
Larger Image

 


 

TheWaveTrading

Author: TheWaveTrading

TheWaveTrading

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.

Copyright 2011-2014 TheWaveTrading

All Images, XHTML Renderings, and Source Code Copyright © Safehaven.com

SEARCH





TRUE MONEY SUPPLY

Source: The Contrarian Take http://blogs.forbes.com/michaelpollaro/
austrian-money-supply/