In my last comment (August 2019) I wrote: "It was not the end of the up correction. The move up continued most probably finishing a long term top wave {5} some 3 weeks ago. The first reaction from the top wave {5} created a correction wave a (or 1). Followed by some 50% retrace for, most probably a wave b. I assume last week wave c started and, is now making an in-between lower degree abc correction wave. Note that it is not impossible that we may get a wave 2 correction. This would mean that we will get a higher price above the current wave marked b. If we stay below the top of wave b we will see a further move down for the creation of correction wave c. The target is around 2750. Finally I expect a lower top in price with a higher top in the SRSI indicator. That would confirm that the last completed wave is a correction wave and that we must expect a continuation of the long term down move. Read my updated comments for the weekly chart and monthly chart for more information regarding the longer term view."
Since I am very occupied with applying my V-Trade system, I will not update my comments on a weekly basis. However, I will try to make new comments when I note some important changes.
In the daily chart you see a nice move up the past seven weeks. The index reached the 161.8% Fibonacci target drawn over the last reaction down and moved past the R1 monthly pivot. The up move is supported by the blue trend following indicator. Furthermore, we see a negative divergence between price and the stochastic indicator and, the start of the downward correction. There is a gap around 2950 that needs to be closed. I expect a correction the coming weeks. Read my updated comments for the weekly chart and monthly chart for more information regarding the longer term view.
Sylvain Vervoort http:/stocata.org/
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