General overview for 09/05/2016:
After the five wave impulsive structure in wave 1 the three wave zig-zag correction has occurred and it looks completed as well. That means, an impulsive rebound is expected towards the key technical resistance first in this market ( levels 82.46- 82.72). So as long as the level of 77.58 is not violated, we can still expect at least some correction to the upside ( but the impulsive wave structure is more likely to happen). Please notice that the bullish divergence supports this view, but first the key intraday resistance at the level of 79.50 must be violated and bullish follow through must happen as well to confirm a valid bullish break out. Otherwise, the corrective cycle in wave (iv) will continue or wave 2 will be more complex and time consuming than a simple zig-zag.
77.58 – Swing Low | Invalidation Level |
79.50 – Key Intraday Level
79.56 – Weekly Pivot
80.66 – 81.12 – Demand Breakthrough Zone
80.83 – WR1
81.95 – Overshoot Resistance
82.46 – 82.74 – Key Technical Resistance
83.26 – WR2
84.62 – WR3
All traders should consider to open buy orders with SL below the level of 77.58 and TP1 at the level of 81.12 and TP2 at the level of 82.46.