A strong move in KRFT on Friday is initial confirmation of a completed wave 4. On a micro level, however, no 5-up has emerged so far. KRFT needs to stage a 5-up of proportions that, at the very least, reach wave circle-b top at 89.00 to make it likely that all of 4 has completed. Should such a bullish development be seen, I will look to add to this trade on a pullback, as, big picture, I very much like this pattern.
GPS is maintaining its setup for wave C/3 up, however, so far it has provided no confirmation of completion of downside. A break of 41.0-41.4 resistance region would be the confirmation that would make it likely that downside has completed. Until such time, further divergent lows are reasonably probable, with support at 61.8% retrace of wave (1), at 38.66.
By Xenia Taoubina, originally published on ElliottWaveTrader.net