Further to my last chart on EasyJet the share price ran up nicely in what is perhaps 5 waves. Now it has bounced at exactly the 50% retracement of the move. I will be looking for a sustained move up to see if my forecast of a potential 3rd wave, is correct.
Opposed to my previous GBP strength idea the USD seems like it may be hitting a strong area of support and may well rally in the coming month or months. With a bunch of US data being printed this evening the answer may come soon. Exciting times in the markets!
Of course this could just as easily be a simple zig zag correction in a new downtrend but I will be watching to see if this recovery has any strength or not. My count suggests some further upside for the Pound.
In my opinion there are elements, as noted on the chart, that suggest Sugar may be about to begin another leg higher. At this stage it is too early for me to say but I will be watching carefully for 5 waves up.
This is a revised count for XIV and, whatever it's merits or faults, might suggest that volatility is on the horizon once this 5 wave impulse ends. I have included both the log and arithmetic chart so as to show the different possibilities of the channels.
The count is not that important here but I was more interested in all the confluences of Fib levels that suggest that while there is more upside in this indices there are definitely levels to watch for corrections, resistance or outright danger.