Friday, December 17, 2010

Impulsive or corrective

I was looking for a rally and the rally came. The problem now is the decline, which has a very hard to count first part. The first part of it looks corrective, but the entire decline looks impulsive. In case it is impulsive, price will go to a new low very soon. If it is corrective, expect a new high for a wave C of b.

Geplaatst door op
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5 comments:

  1. AnonymousDecember 17, 2010 at 5:32 PM

    Jeremy,

    You mean a new low vs 1.3180, isn' t it?
    C would be equal to A around 1.3042 ... if the price is going to make it through 1.3100 which is the 200 days MA.

    Thanks,

    Catalin

    ReplyDelete
  2. Jeremy DemunterDecember 19, 2010 at 5:31 PM

    Hi Catalin,

    Sorry for taking so long to answer, but i was in France for the weekend. It looks like your target of 1.3042 would be the perfect place for wave B to end. Like i said in my latest post, the bears think they have control for a couple of weeks now as they think we are in a wave 3 of 3 of 3, but internal structures disagrees with that. That kind of mass bearish behaviour could push price below an important support like the 200d MA for a while. But who knows i could be wrong, that's why we should always limit our risk as much as possible.

    Friendly greetings,
    Jeremy

    ReplyDelete
  3. Jeremy DemunterDecember 19, 2010 at 5:37 PM

    Oh, btw i just checked the 200 day SMA is at 1.3029 so it looks like that should hold.

    ReplyDelete
  4. AnonymousDecember 19, 2010 at 6:54 PM

    This is really strange. I looked carefully and the 200 days MA is at 1.3100. I wonder if there is anything wrong on the side of my broker?!
    I don't know how to explain such a difference.

    Catalin

    ReplyDelete
  5. Jeremy DemunterDecember 19, 2010 at 7:09 PM

    Probably because my broker opens sooner so has a little more data

    ReplyDelete

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