All the best for 2014!!!
Last week I wrote:
"The low on Wednesday reached the 50 day moving average, coming close to the S1 pivot support. But it turned up the same day back to the previous top. Friday there was a new higher high creating the new top wave 3.8 moving close to the R1 pivot resistance. It looks like the 1830 to 1850 is still a possible end of the year target. I do expect a further move up to the upper side of the volatility band. The expert turned green again. I still have the short position with insurance holding a call option January 1800".
As expected, the index moved to the upper side of the volatility band, bringing wave 3.8 also close to the R2 pivot resistance and the upper side of the up moving pitchfork. With a high of 1844.9 the index is now very close to the long time expected 1850. I believe there is a fair chance reaching this level next week. I may take profit on my short insurance call option with a strike price at 1800 the coming week. I believe we are reaching the top and I think we must be prepared for a longer term reaction down that may start the coming weeks.
Sylvain Vervoort http://stocata.org/