by Avi Gilburt, ElliottWaveTrader.net
Wednesday August 14th 2013
Today's price action lends more credibility to the red count, however as long as price remains above yesterday's low of 1679.25, the 1 - 2 i - ii count labeled in blue is still a possibility. As mentioned many times, this choppiness is favorable for intraday scalps, but treacherous for positioning any swing trades. Therefore, it is still recommended that traders with longer-term oriented goals sit on the sidelines for the time being until some clarity emerges from this mess. Immediate support below is at 1680.50, but price can drop all the way to the low made on Monday at 1675.25 before invalidating the triangle. A break below that level should lead to at least 1670 with the possibility of 1660 being seen. Upside resistance is currently at 1687.50 followed by the declining trend line above that defines the upper bound of the triangle. A breakout above there and then Thursday's high last week would be favorable to the blue count. Until then we are stuck in the middle... of what seems like a triangle. It is worth noting that the fractal mentioned yesterday continues to play out like a script for price, which would suggest a bounce tomorrow rather than a breakdown from here.
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