FAZ: Long Setup Watch List

By: TheWaveTrading | Thu, Jun 26, 2014
Print Email

Reason: XLF is displaying a potential Double Top

From the April 11 low XLF, as well as the majority of US Indices & Sectors, has unfolded a corrective Elliott Wave pattern, which can be counted as a Double Zig Zag.

Even though SPX and NDX probably have not concluded yet their corrective patterns (Though the top should be close to current levels) XLF is displaying a potential Double Top with negative divergence of the daily RSI.

If the Double Top is confirmed, in which case the current bounce MUST establish a lower high; the target is located at 21.95.

XLF Daily Chart
Larger Image

FAZ does not have a Double Bottom but on Tuesday when it established a lower low it printed a Hammer at the same time the MACD has a bearish failure (Maintaining the bullish cross) and it is displaying a positive divergence hence odds favour that a potential Double Zig Zag from the April 11 high has been concluded.

If this is the case the target located in the range 19.33 - 19.74 should be viable.

FAZ Daily Chart
Larger Image




Author: 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 2011-2016 TheWaveTrading

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