question for ew gurus, page-3

Hiya Sally,

I am getting somewhat better at EW, and my take on what you have posted is thus:



If I take a slightly longer look at your chart, going back to late August, I can see what appears to be a fairly standard elliot wave sequence of 3 waves, marked out with the 1, 2, 3, 4 and 5.

If this count is correct, then right now we should be in the three wave section that occurs after the fifth wave of the initial sequence, and before a new 5 wave sequence begins. The direction of the new five wave sequence is to me unknown.

Further movement within the ABC sequence suggest we will see at least a little more downside, and after the US action on Friday, I think this will be met on Monday, with price hitting around the $28 level.

From Past observations by Voltaire, BHP seems to like multiples of 7 as support and resistance, so $28 would be neat as the area from which the next major five wave sequence begins.

Of note also with the lines you have marked out is that they appear to form an inverse head and shoulders, which, if the neckline at 3170 odd is broken to the upside could see a nice retrace back up to $42... hope that helps and ta for the opportunity to practise some EW stuff.

;)