Date: September 2012: IBEX: Follow up of the short term EWP | The wave trading
IBEX: Follow up of the short term EWP | The wave trading
IBEX: FOLLOW UP OF THE SHORT TERM EWP
We have a “thrilling” EWP
As I mentioned in my last update on September 13, the internals structure of the move from the July 25 nominal low, of a truncated wave (C), has a clear deficiency of not being impulsive.
If it is corrective then a price sequence of 7 -wave can complete either a (ABC) = Zig Zag or (ABCXABC) = Double Zig Zag.
There is a technical issue since if the terminal pattern is an ending diagonal it does not obey to the rules since its wave (iii) is the shortest. But if price closes Friday´s gap at 7935.90 then the odds of a top will substantially increase.
If a top is in place don´t ask me for a target. Who knows if the 200 d MA = 7583 will hold which would result in a shallow pullback or if a more reasonable pullback will bring into play the 0.382 retracement.
Regarding the longer time frame scenario, if we have a top, as long as price does not lose the 50 d MA, I am in the camp of labeling this up leg as the wave (A) of a larger Zig Zag up.
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