Last week I wrote: "Wednesday the index reached the low of the week just past the PP pivot level of the month. From that point a pullback up was started but, still closing the week a few points lower. Technically I expect a move down towards the price support at 2544 which is also, close to the S1 pivot support, the low side of the volatility channel and the 100 day simple moving average. Keep in mind that there is a good chance the index will remain around the current level until the year-end, closing the year with some 25% profit. Looking at Elliott wave counts, we are possibly near the end of an impulse wave 5, short, medium and even long term. Be careful, I believe we are close to a longer term top. Read my comments on the weekly chart and monthly chart for more information regarding the longer term view."
There is a gap on Tuesday, I assume this will be closed the next couple of weeks. The index reached the R1 pivot resistance of the month and a last possible Fibonacci target at 2600, exactly the same level as R1. The end of the year coming close, it is always difficult to make predictions because, the professionals want to keep price at high levels for presenting a good end-of-the-year report to their customers. Technically we should expect a correction in first instance to 2580, on the other hand the next up target is around 2650. I have to repeat what I mentioned last week: Looking at Elliott wave counts, we are possibly near the end of an impulse wave 5, short, medium and even long term. Be careful, I believe we are close to a longer term top. Read my comments on the weekly chart and monthly chart for more information regarding the longer term view.
Sylvain Vervoort http://stocata.org/
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