Friday, April 15, 2011

Downside target

The market reached the 1320 level I posted yesterday and it made the high exactly at the 1322 level where I expected the market to find resistance. And now I expect the downtrend to resume on a C or W3 wave next week and then we will see if the market wants to go down to test the 1249 level. However, I should point out that the wave from 1302 to 1322 could be changed into a 5 wave structure so maybe the entire move is not an ABC as I have it's labeled but just the A leg on it own. And if that is the case then the next wave would probably test the 1302-1311 level and then go on a C wave to re-visit the 1320 area. The trend remains bearish and the only thing that could change it would be trading and closing over the TA.

I sold all my longs at 1319, shorted at 1322 but took profit at the close. I am travelling at the moment so I don't want any weekend surprises. I will profit as a short if Monday comes and we test the TA again or on the long side after the next bearish wave is done.

Have a great weekend!

No comments:

Post a Comment