So, there was a reaction from the retracement Fibo-level 38,2%, and, I think, it is the wave of V. Therefore, I suggest to buy from the current level, putting stop-loss order at the bottom of - 490$. Target-zone, the end of wave V, will approximately be 700$, 61,8% from wave III.
So, it's obvious that in past months the price was forming an impulsive wave and it even had an ending diagonal in wave (5). And so, since the end of March there goes a zigzag formation in the wave . Perhaps, after a few days or a couple of weeks there will be the beggining of the wave , that will break down the 180$ level. After there will be formed a minor...
OK, the divergence is now certain and a retracement of AO towards zero is expected, where the fourth wave is supposed to finish. However, there is still the possibility of a new lower low in price before the fourth wave actually begins. :)
I replaced the MACD with the awesome oscillator.
I've just published a similar divergence forming on the daily plot of EURUSD. Oil has already finished its fourth wave and started the fifth wave. Fundamentals? Debt deflation => carry trade reversal => strong dollar
This is no trade position. I just wanted to point out a divergence of the price in relation to Elliot wave oscillator. Since I do not own the script of this indicator, MACD is just... fine. :D (L.E. I've just found out that the Awesome Oscillator indicator is available.)
An diagonal triangle 1-2-3-4-5 of C wave is over. Waiting for the breaking of the resistance 6.80-6.81.
If you see the "Aussie map", linked below, gives a more rounded picture of the local market at the time being. Stocks are currently in confluence area that gives the shorts better probabilities for a possible correction. Momentum divergence can been seen from miles away and a closing below the up trending arc line will have the sound of a bottle opened,...