General Overview for 03/01/2014 10:00 CET
Yesterday's bullish impulsive count has been invalidated due to wave (i) and wave (iv) overlapse, so the alternate count is in play now.
In this count, the top for wave 3 purple is at the level of 145.68 and from there a corrective cycle has started. Due to the wave development in this correction, which is impulsive, the suggested simple corrective cycle will be in shape of the ZigZag (5-3-5). Price is currently in progress of making first leg of the ZigZag pattern.
However, on H4 time frame I have indicated one more possiblity of wave progression, due to the fact that ZigZag corrections are highly unlikley in wave four of overall wave development. So, there is a possibility, that wave 3 purple has been completed at the level of 142.84. Then price has made short correction in wave 4 purple and the last push higher has been wave 5 purple. This wave has been the last wave of overall impulsive cycle to the upside and now price is making first impulsive wave to the downside of a whole new cycle. To confirm this scenario, price must breakout below the level of 135.44 (top of the wave 1 purple).
Support/Resistance:
145.68 - Swing High
144.41 - Weekly Pivot
143.18 - WS1
142.88 - Techncial Resistance
142.61 - Intraday Resistance
142.05 - Intraday Support
Trading Recommendations:
In anticipation of wave v black to the downside, short side of the market should be in play for intraday traders. The entry should be as close as possible to the level of 142.61 - 142.88, SL should be above the level of 143.01 and the TP level should be at the level of 141.04.
