TA - Short Term Trading, page-429

Hello Everyone

Lol, is it off topic to produce a weekly chart here.........

New thread, 1 minute chart, 5 minute chart, ..........a weekly chart would probably feel like death warming up...lol



Weekly chart for GXY

As you can clearly see in green trendlines, GXY has completed a full set of 5 waves , with the ABC correction ( red trend lines ) yet to be complete.

I guess the biggest question to be asked, is that ( B ) going to break up past the maximum height of sub wave 5 up ( 4.19 ) and render
( c ) as not required , or is that spin top candle ( yellow arrow ) the commencement of the final phase of the ABC correction ?

Looking at the indicators, if you think about this logically you will come to the conclusion that phase ( c ) is imminent IMO

a) RSI 14 is displaying clear divergence , it looks to be challenging support at 52.

b) AO indicator has bearish momentum with 5 red bars in a row now and that usually recedes to the baseline without fail.

c) The MACD is maxed out and has flat lined ...............what goes up must come down.

Lets have a look at the daily chart


Phase ( c ) looks more prominent on this chart, with some lower lows present and lower highs, what i am also keeping a steady on is, if that 5 & 9 ema drops below the 20sma, if that happens, then thats a huge red flag and confirms that phase (c ) is set in motion.

Looking at the indicators, :

a) RSI 14 has prominent divergence and could drop back to the low of 35 support which is obviously bearish.

b) AO indicator is bearish and could drop to the negative green base line.

c) MACD, that blue line looks to be diving below the red line which could see it revisiting the negative green base line too.


Of course what makes this action a bit puzzling is that the MACRO indicator that I pay most attention too is pretty bloody BULLISH


The Global X is nearing to challenge recent highs with a nice jump into the 70s over night !

So in the short term i believe the ABC correction still has more to play out, but i never loose sight of the " bigger picture " either....which the longs would appreciate...


This is a master EW chart for GXY and its on the strongest, longest of the main waves up , could be 1.61, 2.61, 3.61 fibs higher than the main wave 1 up ( MW1 UP ), currently GXY is on the main wave 3 up ( MW3 UP ), has just completed 5 sub waves with ABC correction yet to complete.

Once the ABC correction plays out, then GXY will then commence a new set of 5 sub waves on the main wave 3 up , which will then mean that the formal EW wave count would be,

Sub wave 1 up, main wave 3 up.

I am a long term holder of stock that likes to swing on all the sub waves and the main waves 1, 3, 5 up and avoid all the sub waves and main waves 2,4 and post wave 5 up ABC corrections down, hence my current sentiment.

IMO

No financial advice