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JXMFinancial
Jan 9, 2015 2:19 AM

Long setup after consolidation of Oct gap.  

Edwards Lifesciences CorporationNYSE

Description

Another top player here
Comments
eran.arad
I would add a few notes after seeing your chart... First - if you expect wave 5 to be equal to wave 1, than you're absolutely right, and there is some long left here. So for long 2 things need to happen - a break of your upper blue dotted line, to complete the wave 1 scale and then a break of that target in order to remain long. That's it for the long side. I would actually short this one and I will explain why: The triple top formation, I would suspect that the upper blue line will not get crossed but will for a resistance (could go above it by a few cents before it goes back to the range between the two blue dotted lines...) If that is the case the clear target is the lower blue line. Another reason to short is a good risk-reward ratio - you can short and place your stop just a few cents above the upper dotted line, while your target is the lower blue line... Another reason to short - if wave 5 is complete since it countered resistance then the corrections wave will start and that means down again. And finally - I don't see huge volume to support a sustained move upward, only a break up with a large volume will change my mind. I'd add further that if the lower dotted line is broken down - I would expect this to go all they way down to the 105ish. I am not recommending anything. I would watch the volume. Overall interesting chart.
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