Hey traders! CADJPY is producing a nice bull flag and is likely wave-(iv)-of-((c)). That would mean that we have another rally coming before it's time to start looking for shorts. I have target set to the A=C level with SL beyond the point which would invalidate the triangle. Setup is valid unless new highs are made before triangle completion or if invalidation level is breached.
Price dropped below C on a bearish impulse. HOWEVER, another triangle has presented itself. This trade is active with the same profit target. I have stops set below wave-e terminus:
Boss hoss, great comment. Thanks for bringing up that correlation. I am anticipating a drop in both by the end of the week. I think this bullish impulse is the c wave at the end of a triple combination correction. Therefor, this would mean that upon the completion of this five wave sequence we will see a drop. Likewise, in OIL, we seem to be completing an expanding triangle which may mark the end of its bullish rally as well.