I look at elliot wave on a larger time frame and use smaller time frames for entry/exit . The thing i have noticed is the on a monthly scale it appears we are in a wave 1. Wave 1 is usually long in time and price than the preceding wave c so there is a good chance that this current wave ()on a monthly scale ) has further to run and this is simply a monthly retrace , noting that we are nearing the end of the month and a solid close above the 50% retrace could add weight to a further move long. But given the average time between lows is approx 25 months and we are more than half way through that "period " we could potentially see a sharp fall into a low in early april, noting also the vertical blue line where the low has currently fallen as determined from convergence oftime extensions previously mapped out . So the monthly chart could go either way but i am leaning to a further move long . Breaking down the current monthly wave 1 into subwaves on a weekly scale we can see that we have topped out on a wave 5 and we are currently in an ABC pattern short which complies to EW theory and could be deemed to be complete. There is support from a trend line under it , but the trend line cannot be confirmed until price moves back above $4.12 so buying here is risky because if wave c is not complete it could potentially fall to $2.50 or further. A safer trade would be to look for a dow entry if price moves up with a target beyond $4.20.
GXY Price at posting:
$3.39 Sentiment: Sell Disclosure: Not Held
