General Overview for 27/07/2014:
We can see a clear triangle pattern formed on Weekly time frame and there as some indications, that this pattern has been completed and impulsive bearish wave progression has started. This assumption is valid only if the corrective wave (ii) green ( H4 and H1 time frame) will not violate the level of 1346. The suggested simple corrective cycle in wave (ii) green is either Running Flat of Irregular Flat formations.
Currently the market has broken above the golden intraday trendline and it is trying to complete the last wave to the upside of the mentioned corrective cycle – wave C black. The targets for this wave are on the chart, for both corrections respectively.
Please notice that this is only a simple corrective cycle count and it can get more complex and time consuming.
1346 – Green Impulsive Cycle Invalidation Line
1296 – Blue Impulsive Count Invalidation Line
Short orders can be placed from the orange rectangle target areas with SL above the level of 1346. The potential TP is way beyond the 1287 low – projected target for wave 5 black is at the level of 1150 and with this R/R=10:1 it is a good trade to enter for SWING TRADERS.