General overview for 05/05/2014 11:40 CET

The correction went a little bit higher than expected but it did not break above the last swing high. From the recent immediate high of wave (ii) I can label a five wave decline in wave 1 red. Currently, the market is in corrective cycle that might be finished, but it looks like the correction will be a little bit longer in price and time. The potential target levels are two orange rectangles and a failure is expected there to start an impulsive continuation to the downside. The key level to break is supply breakthrough zone.

Support/Resistance:

142.50 - WR1

142.47 - Swing High

142.13 - Technical Resistance

141.94 - Target Level #2

141.79 - Target Level #1

141.74 - Weekly Pivot

141.63 - Intraday Resistance

141.26 - Intraday Support

141.12 - Swing Low

140.96 - 141.06 - Supply Breakthrough Zone

Trading recommendations:

Sell stop levels should be open from the level of 141.79 and 141.94 ONLY if the level of 141.2 will not be broken first. SL for sell stop orders is above the level of 141.50 and TP is below the level of 140.96 with possible downside extension.