First of all, the decline from the top is in three waves [a,b,c (circle)], this follows a rally in five waves [i,ii,iii,iv,v (circle), a perfect completed Elliott wave cycle. The rally to 1246 was wave 1 of a five wave advance, the decline is wave 2, the next move is wave 3 up. Wave 2 could be over because it has retraced more than 61.8% of wave 1, it is in three waves and the MACD histogram at the bottom of the chart is at new low and about to turn up. There is no divergence on the MACD because actual reading measures the third wave [wave c (circle)] which is where the MACD is at its lowet level. The long term rally should resume.The above references the authors opinion and is for information purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice.
Thierry is trading strategist at e-yield.com. A proprietary trader, investment adviser, analyst and writer who has been delivering products and services to retail and corporate investors since 2000. Speciality: Stock market analysis & forecast, sentiment analysis, Elliott wave analysis, EUR/USD, GBP/USD, Gold, dollar, intraday / short term / long term. I am a member of the Society of Technical Analysts and I hold the Investment Management Certificate. I started to give trading advice in 2002 with One Way Bet where I was responsible for the UK Stock Tips and FTSE Intra-day services, then with Fleet Street Publications where I was the editor of the Spread Trader tip sheet. I have worked with leading hedge funds as an advisor and have written many articles for publications including Money Week and various research websites. TA qualifications: MSTA Unit 01 UK Regulation and Markets Investment Management Certificate (IMRO)