Market View
- For as long as prices stay above the uptrend line, the long term uptrend is still intact.
- Key support at 2,875, which is the last significant low confluence with 200MA. 2,912 could be a good support too.
- If the correction terminates between 2,875 ~ 2,912 and rebound from here. The correction since Feb 21 fulfills Elliott Wave corrective count of A, B, C. This is provided IF it terminates here. Elliott Wave is accurate often at hindsight. As the market unfolds, recount is often necessary. Which is why I always have reservation relying too much on Elliott Wave.
- If 2,875 is taken, the risk of trendline violation of the uptrend line increased. If the uptrend line is violated, we are likely to see Oct 5, 2011 low ( 2,521 ) be retested. If the correction goes beyond 2,875, there is a likelihood this is wave 3 of the corrective A wave.
Labels: Market Direction
posted by Market Wizards @ March 06, 2012
Comments: 2
