General overview for 09/01/2017:
The Weekly time frame chart shows, that the long-term swing top at the level of $1922 had been labeled as wave 3 high. Then the market was in a long corrective cycle, labeled as wave 4/A, with the bottom at the level of $1042. After the low was established, the market rebounded to the upside and made a first wave labeled as wave (A) with the top at the level of $1377. Then another three wave decline occurred and it was labeled as wave (B). The wave that is missing now, is wave (C) to the upside. The projected target for this wave is at 127%FibExp of the wave (A), which is somewhere around the level of $1554. The main resistance, however, will be the golden trend line and only a sustained break out above this line will result in acceleration to the upside.
Daily time frame presents a more detailed Elliott Wave labeling of the recent wave progression. We can clearly see the ABC flat corrective cycle had bottomed at the level of $1123 and then a lift off higher.
This lift off was labeled at the 4H time frame, especially wave C of the overall structure. We can see that the impulsive labeling is possible, so the overall correction might be labeled as ABC Irregular Flat cycle. Nevertheless, since that bottom, the market had retraced 23% of the previous swing, but it does not look too much impulsive so far. Patience is needed now.
1045 – Swing Low
1123 – Wave (B) Low
1202 – Technical Resistance
1232 – 50%Fibo
1243 – Technical Resistance
1256 – 61%Fibo
1337 – Wave B Top
So far the is no reason for bulls to close the buy orders, but please notice the invalidation line is at the level $1124. Swing traders should keep in mind, that all long-term buy orders might have troubles around the level of 1330 – 1380 (if they ever get there at all), but if this level is violated, then the projected target is around the level of $1555*.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.