SPX500 weekly chart is carving a shooting star and if the indice closes below 3200 mark this Friday, the pattern would complete. Certainly, this does not confirm a reversal but potential remains for a curve lower next week. Looking at the facts again, the drop from 3400 to 2200 was sub divided into 5 waves, Wave (1) on the chart. Potential Wave (2) rally has been...
Gold continues to probe short term resistance around $1720/22 handle. It is the fibonacci 0.618 resistance of the recent drop between $1745 and $1671 respectively. At a larger degree, Gold remains vulnerable for a sharp decline towards $1660, $1570 and $1450 going forward, as Wave C unfolds. The yellow metal has been in a corrective phase (A)-(B)-(C) since $1920...
US Dollar Index slipped to 96.06 lows today with bullish divergence on 4H charts (not seen here). A sharp rally towards 97.80 cannot be ruled out before the index finds resistance again. The index seems to be unfolding Wave 3 lower since 100.56 highs and is progressing towards 94.65 and further. Lower degree wave iv should be unfolding higher towards 97.80, which...
EURUSD might be carving an a-b-c lower towards 1.1180/1.1200 as potential wave iv, before resuming higher. Looking at the short term wave counts, the drop from 1.1384 through 1.1241 could be wave a. The sharp rally towards 1.1375 as wave b, and wave c is underway towards 1.1180 respectively. The structure would complete termination of wave iv and resume higher...
Dow Jones might have carved a lower top around 27636 levels and is seen reversing sharply. The indice is down more close to a percent and trades near 27300 as we publish this article. There is always a tiff between the fundamentalist and the technical trader regarding possibilities of future price action. Most traders/investors still remain bullish on the indice...
Brent Crude might have carved interim top around $43.40 handle, after having rallied from $15.75 lows in 5 waves. Ideally, an impulse is followed by a 3 wave corrective drop and Brent might have resumed towards the same. The first Wave A is expected to drop through $33.00/34.00 support, near previous Wave 4 as seen on the chart here. Subsequently, Wave B should...
GBPUSD is progressing towards 1.2900 levels as Wave 5 is unfolding since 1.2100 handle. Within Wave 5, a lower degree wave iv seems to be underway, and is expected to terminate close to 1.2500/30 levels going forward. Please note that fibonacci 0.382 retracement of wave iii is passing through 1.2529 and high probability remains for a bullish bounce, as a general...
EURUSD is pushing lower towards 1.1180/1.1200 levels, potential lower degree wave iv, before resuming its rally. The medium term outlook remains intact towards 1.1500 resistance. The probable wave counts are as follows: Wave 1: EURUSD rally from 1.0636 through 1.1150; Wave 2: Triangle correction a-b-c-d-e terminating around 1.0775; Wave 3 in progress towards...
US Dollar Index might be underway to produce a corrective rally towards 97.80 as a lower degree wave iv. The index is seen to be trading close to 97.00 and could continue further before reversing lower again. Also note that fibonacci 0.382 retracement of lower degree wave iii is seen at 97.80, along with Elliott Chanel resistance. This makes 97.80/85, a high...
EURUSD continues to correct lower after hitting 1.1384 highs last Friday. The currency is moving in accordance to the expected corrective drop as a lower degree wave iv, before rally further. The Elliott Wave channel along with fibonacci 0.382 retracement of potential wave iii are converging around 1.1185/90, seen on the chart. If larger degree Wave 3 is...
Gold has finally carved an Evening Star after consolidating for a few weeks since printing high at $1765. The yellow metal also broke lower on Friday towards $1670, before pulling back. It is just a matter of time to break below $1660 and confirm a trend reversal. With respect to the wave structure, Gold might have carved a meaningful top at $1765, at a larger...
Bitcoin is consolidating around 9700/50 after reversing from sub 10500 levels last week. The crypto had dropped towards 9150 levels before pulling back higher again. It could be hitting a fibonacci retracement before reversing lower again. The rally between 3850 and 10500 looks to be in 5 waves, hence impulse. Ideally, we should witness a corrective drop (3...
SPX500 structure continues to inspire towards a large bear cycle below 2200 mark. We continue to present the bigger picture, no matter how irrational it may look during these times. The Head and Shoulder bearish reversal pattern also awaits a Right Shoulder formation, which could be around 3100/30 zone. On the weekly chart, we will have to wait a few more days for...
Gold continues to drop carving lower lows and lower highs since $1765 levels. After breaking $1690 this early this week, the yellow metal retraced higher towards $1720 before finding resistance and turning lower. Immediate resistance is seen at $1745, while support is seen through $1689 respectively. Ideally, Gold is expected to stay below $1745 and continue...
US Dollar Index continued its drop towards 96.44 today, before pulling back. The index might have carved a lower degree wave iii, within Wave 3 lower towards 94.65. If the above counts are correct we could witness a corrective rally towards 97.80, which is also the fibonacci 0.382 retracement of wave iii. The rally should be seen as another opportunity to go short...
EURUSD extends its rally towards 1.1370/80 today. A potential wave count could be suggesting that a lower degree wave iii might be close to terminating or terminated at 1.1383 today. A break below 1.1325 would confirm that EURUSD is preparing to carve a lower degree wave iv towards 1.1185 as highlighted on the chart here. Please note that the alternate count has...
Dow Jones had rallied past 26370 handle before finding resistance. Futures have reversed since then and are trading around 26140 levels as we write this article. The entire structure remains constructively bearish in terms of Elliot Wave Counts and the classic Head and Shoulder reversal pattern. The previous drop from 29600 through 18200 was in 5 waves, hence...
Bitcoin might have completed its lower degree impulse wave between 3850 and 10400/500 levels. High probability remains that it has temporarily turned lower towards 6200 levels, before the rally could resume further. Interim resistance remains around 10400/500, while support comes in around 8100 levels respectively. Please note that the expected drop should be in 3...