Because I know Tim is a big supporter of EWT, I thought I would put up a post on GS …
I'm long GS and I am watching here as the stock looks like it has completed a Wave 2 retracement, and is about to start a 3rd wave push higher …
GS 10-Minute Charts
Wave 2 pull-backs are very emotional as buyers and sellers battle it out … they typically end at the 78.6% Fib level as GS just did .
The 2nd wave ended right in the projected target zone and is now on the cusp of breaking a down trend line.
GS 60-Minute Chart
It has to be determined whether or not the 3rd wave is just that … a 3rd wave in a corrective bounce, or whether it leads to a 5th wave push higher. We can figure that out when the 3rd wave is over and the pull-back begins.
Here is the Contraction Pattern I am hawking right now … it looks like it is going to pull-back before breaking the move higher.
GS 3-Minute Chart
Cheers … Leaf_West (please visit me at my blog (http://blog.tradingwithleafwest.com/)
