Sunday, 21 October 2012

SPI200, Sunday OCT 21, 2012

Hi Traders,
The SPI200 seems to have reached the very top with a much expected two-step-pattern. I don't see any other way but downward.
If the Elliott Wave count is right - see the monthly chart below - we just started 5 waves down with a minimum target at 3700. Volatility could be quite high at this stage and so the amplitude of this wave down.
Hence, shortening the SPI200 now might result in a very profitable trade.  
As you see in the weekly  chart below we've reached the top target expected between 4,564 and 4,583 in 5 waves up.
The fact that we've reached the top of the wave up is confirmed by the candlestick reversal (top right) in the daily chart below.
The 4-hour chart below shows a three-soldiers pattern which is usually a prelude to a retracement. If a little retracement occurs, that would be the perfect entry point.

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