Tuesday, June 23, 2009
876 is Critical. It's the peak of wave 1 on April 17th. We have bounced off 876 several times in the past, and it will be major resistance. Since a bird in the hand is worth two in the bush, it may be a good time to take some profit as we come closer to that level.
If we drop past 876, then the scenario I presented yesterday will still be intact.
Looking at the wave from a larger time scale it appears to be an ABC near completion, and a beautiful EW at that. 28% is less than normal retrace for a wave B, but if we turn at 876 this last wave from 923 will be a few points shy of being equal to A. Not quite what is expected of a third wave, but quite sutable to a c wave. So while disapointed I too believe this pattern looks more likely to be the end of a three wave pattern.
If we break the upper trend line then Intermediate B will likely be complete, and wave C will be taking us up to the climax of Intermediate B
I found an interesting intersection in this chart. The pink and blue stepped lines are the 20 and 200 day moving averages. The trend line crosses the exact same point!
By the way check out tonight's post from Mole on the Evil Speculator. He did an interesting cycle study that backs up a low for Wednesday. That goes right along with the 876 bounce theroy
Analysis presented on this blog has only informational and educational purpose and does not represent a proposal for buying or selling currency contracts.
Posted by Robert Campbell at 13:32