- Long term outlook: Up
Medium Term Outlook: Down
Short Term Outlook: Sideways to Down
Medium Term Revision Point: Break above 21.31
Potential Medium Term Target: 8.45 and lower
January 11 high is in a position to be wave ‘a’ of the current correction, with January 12 low to be in a position of a.B and January 14 high in the position of wave b.B. If this scenario is correct, we should expect to see a fall to the range of 17.60 to 17.22 without breaking the high of January 11 at 18.90. Subsequently, we would expect to see the price rise above the 18.90 level and complete wave ‘b’ or ‘2’, while keeping below the December 3 high at 19.46.
As our alternative bearish scenario, we have a completed wave 2 at the high of January 11. This scenario will imply that the January 12 low is in a position of wave i.3 and the January 14 high is in a position to be wave ii.3. If this scenario is correct, then we should see a fall below the December 22 low, without breaking above the January 11 high.
In either case, we would expect the upcoming days to be sideways to down and will, therefore, be on the look out for low risk, high probability sell signals to emerge to take short positions.