While today's gap-up and then the subsequent downmove were on expected lines, the form and extent of gap-up was not on expected lines as the upwave 5987-6038was too swift for a Corrective.
It has been my understanding to start the EW labels as ABC and then if C gets extended(i.e. does more than 1.618*A) then switch to the labels 12345 of Impulse.
And it is in this understanding that even today I would label the downmove from 6112 as ABC only as
A=6112-6042=70
B=6042-6072=30
C=6072-5982*=90 so far done 125% of A
.png)
If tomorrow we get a gap-down opening and go below 6055 then I would be labelling the downmove as 12345.
And although we have broken below an ascending trendline, positive divergence was visible in Charts upto 30 min time-frame:
15 min chart
.png)
30 min chart
.png)
A gap-down opening would negate this positive divergence.
Next support exists at 50DMA=5940
.png)
However if we donot open gap-down below 5967, a quick upmove above 6038 cannot be entirely ruled out.(This view point is influenced by my dissatifaction with today's upmove)
.png)
A confirmed pattern for the downmove has yet to take shape and till that happens,safe stop-loss for positional shorts would remain at 6072.
It has been my understanding to start the EW labels as ABC and then if C gets extended(i.e. does more than 1.618*A) then switch to the labels 12345 of Impulse.
And it is in this understanding that even today I would label the downmove from 6112 as ABC only as
A=6112-6042=70
B=6042-6072=30
C=6072-5982*=90 so far done 125% of A
.png)
And although we have broken below an ascending trendline, positive divergence was visible in Charts upto 30 min time-frame:
15 min chart
.png)
.png)
A gap-down opening would negate this positive divergence.
Next support exists at 50DMA=5940
.png)
.png)
A confirmed pattern for the downmove has yet to take shape and till that happens,safe stop-loss for positional shorts would remain at 6072.
No comments:
Post a Comment