IBOV, as other stock markets worldwide, are in uptrend. Being short in uptrending markets can be a ungrateful task. But im seing signs of a correction for the begnning of this next week (Monday, July 18 of 2016). The signs are: -Topping the white up channel; -Daily Hammer after 6 days of rally (not shown) -Price Squeezing, best showed at right chart; -At 4hrs (left chart): Divergence of MACDH ; Overbought stochrsi; Hidden divergence of RSI; -At 1hr (right chart): Stochrsi hook down, Mutiple Divergences on RSI; Strong divergence of MACDH, MACD convicted crossing down;
Targets Shown by the red and blue lines.
Trade closed: stop reached
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What was wrong: the ending pattern is not a ending diagonal but a barrier triangle; Wave 3 is less than 1.618 of one, and its not extended, which should make me expect for a longer 5 instead. The trend never changed to down in almost all timeframes. NEXT