In my previous post, I shared the elliot wave chart which shows the short term impulse subwave 5 to complete at 0.036 which was achieved at yesterday's trading. This is one factor technically why prices normally pull back in a short corrective wave before resuming in its previous trend.
If we draw Hurst envelopes over the price movement we can see that 96% of the time, prices are generally kept within the confines of these two Hurst envelopes.
Prices generally rebound when touching the lower Hurst envelope( either the inner envelope or the outer envelope) and profit taking occurs when prices touches the outer envelope of the upper band.
As you can see, yesterday prices touched the outer bound of the larger Hurst envelope. I've indicated a similar occurrence in the recent past when prices touched the outer envelope and then pulled back.
I've marked the support levels offerred by the Hurst envelopes where short term traders will be keen to take positions..such as re-entries after initial profit taking, and these can be read from off the chart.
Hope this provides a proper technical picture for the short term, because overall and for the longer term, imho, CEO displays strong wave counts for much higher prices if they eventuate.
Trade well, trade safe...and good luck again for happy traders.
Please read the disclaimer below my signature line. Thanks
dascore
CEO Price at posting:
3.2¢ Sentiment: None Disclosure: Not Held
