It found support on the 34 EMA and is being squeezed between...

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Goodfella58

4,227 Posts.

1848

09/04/24

14:11

Post #: 73259110
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Originally posted by EugeneB: ↑

Note: The chart below is just an example to explain my thoughts ... for explanatory purposes in the chart below it is assumed that 1) a trend reversal took place at the bottom of the uptrend 2) and the top of Larger Degree Wave 1 was reached ... I repeat this is an example only ... I do not know how this will play out

1) if you look at "smaller degree" wave 5 in isolation, then yes the retrace looks crap from a bull perspective i.e. its has retraced more than 0.854 Fib (2nd pic ...1 hour)
2) however if you zoom out to a higher/larger EW degree e.g. daily (below pic) then Wave 1 of the larger degree consists of 5 smaller waves and small wave 5 is the last/top wave
3) IF this is a wave 1 of the "larger degree" then you should "expect" a retrace in the context of the larger degree Wave 1 between 38-78 FIB is OK ... 50-61 Fib being a sweet spot
4) this means that the daily trend will be making smaller-degree lower-lows to achieve the higher degree retracement ... however it does not mean the uptrend has changed and if this is truly an uptrend then Wave 3 and 5 will easily surpass the top of wave 1

anyways .... my 2c ... maybe there are some EW guru's around that want to chime in

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It found support on the 34 EMA and is being squeezed between that and 13 EMA.

If it is the start of a bull run it needs to "channel" and cannot break out of the channel without a significant retrace. However i dont see a completed 5th wave unless it is going to truncate and will lead to quite severe falls. its really at the inflection point now but i would not be holding if it decidedly breaks this channel.

As ive said i think Q3 will evidence between 20 million and 50 million operating losses as arrears were trending much higher and they have made a rod for their own back by comparing bad debts from a weaker quarter against revenue from a stronger quarter and now this reverses and they cant use the accounting trick they used the last time.

ZIP Price at posting: $1.26 Sentiment: None Disclosure: Held
4 Upvote

1 Great analysis

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