TNA: Bullish Watch List

By: TheWaveTrading | Sun, May 11, 2014
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Reason: A potential bullish Falling Wedge

From the April 22 lower high price has formed a likely converging pattern. Last Friday after gapping down and establishing a marginal lower low price reversed to the upside closing the opening gap. Usually this is a signal that the selling pressure is waning. The daily candlestick is suggesting that we might have tradable bottom.

TNA Daily Chart
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If price has formed a wedge how can we fit this "short-term" bullish pattern within the decline from the March 4 high?

In my opinion the decline from the March 4 high can be counted as a Double Zig Zag. Therefore the assumed wedge either has completed the wave (Y); Ending Diagonal; (Blue Labelling) or it is the wave (I) of a pending larger impulsive sequence of the wave (Y): Leading Diagonal. (Red labelling).

Therefore today I can only establish the following assumption:

  1. If the wedge is an Ending Diagonal from the March 4 high price should have completed the wave (A) of a likely Zig Zag. If this is the case the assumed wave (B) rebound might have as a target the 0.5 Retracement (Where we also have the last lower high and the 50 dma)

  2. If the wedge is a Leading Diagonal then the following rebound wave (II) should stall in the range of the 200 dma (68.90)-Gap fill (72.02)

If the wedge pans out the buy signal is issued when price breaks through the upper resistance line although I hope to be able to seek an entry level before the breakout occurs.




Author: TheWaveTrading


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