Elliott Wave Analysis
The decline in cable today is more fitting of a third wave.
So I have labelled the movements as such.
The trend channel and the Fibonacci extension
There were some interesting developments today as you will see.
Lets start with EURUSD.
The price declined off the upper trendline today.
So wave ‘ii’ is possibly complete at the recent high.
GOLD has reached a possible top in wave ‘i’ brown.
Wave ‘ii’ looks to be developing into a flat correction shown in the trend channel.
Today is one of those days where the larger theme of a turn into chaos, is beginning to materialize in market prices.
After yesterdays impulsive decline from the target area,
Todays correction adds weight to the idea that this market may be topping.
Calling a major turning point in a market which is completing at seven degrees of trend,
Is a bit like like trying to predict the exact point a supertanker comes to a halt and reverses direction!
Suffice to say it is difficult at the best of times.
There are times when the Elliott wave perspective provides a glimpse of the future with stunning accuracy!
Last week I sent out a free update to you guys which proposed a rally to a top for EURUSD, and a rally out of a correction to new highs for the DOW.
The action off fridays low has been flat as a pancake!
This leads me to believe that the decline in wave ‘2’ pink is not quite complete.
Another decline into the lower trend line