Tuesday, December 28, 2010
Dangerous Correction
I was looking for a corrective decline and it looks like that is what we got. But how sharp was that decline, wow ! It is really dangerous to "catch this falling knife" so be carefull should you try to go long. On the other hand it requires some faith in the EW analysis and this could be a nice opportunity.
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Hi Jeremy!
ReplyDeleteThe move yesterday has really scared me. It was impressive. It made me wonder if we are on the right side, especially observing that the guys from EWI are dollar bullish.
As you said, the 200 d SMA is a strong support which, once broken, might be a game changer.
Until then we try to stick with the wave count despite that the yesterday's move is not that clear in structure.
The minimum of the month was set in the first day of December and that is another very important indicator that EUR bullish is favored.
Wishing you all the best for the new year,
Catalin
Wow!
ReplyDeleteIt moved up while I was writing.
Is it impulsive? I rather see it having a corrective structure.
If we are in a B of C wave as per your count, the corrective structure of this short rally remains in line with your proposed wave count.
ReplyDeletePatience is required as long as the 200 d SMA holds.
Catalin
A more significant down trend is possible only if we accept that the last top at 1.3497 was the end of a wave B (a bit short in both distance and time)
ReplyDeleteCatalin
Hey Catalin,
ReplyDeleteI'm looking at a couple of things that are possible at the moment. But from 1.3156 there are 3 waves down so for me the trend remains up as long as 1.3083 isn't broken.
Friendly greetings,
Jeremy