General overview for 13/05/2014 09:40 CET

The market has hit the anticipated resistance level in the territory of previous wave 4 and now is in the critical level to confirm or invalidate the count. The supply zone between the levels of 140.97 - 141.06 should provide the resistance now and any breakout higher above this level will invalidate the main green impulsive count, making alternate green count the correct one. That would mean the overall impulsive wave development is even more bearish but the correction for wave alt.2 green might go slightly higher to the level of 141.41 and then downward trend should resume. For more immediate bearish progression to occur the market needs to fail at the current level and break the intraday support at the level of 140.50 in impulsive fashion. If that happens, next support to keep an eye on is the swing low at the level of 139.90.

Support/Resistance:

142.27 - Wave 2 red high

141.35 - WR1

140.96 - 141.06 - Supply Zone

140.02 - Key Level

140.61 - Weekly Pivot

140.50 - Intraday Support

139.90 - Wave (iii) green low

139.25 - Wave 5 red target

Trading recommendations:

Swing traders should still keep short positions open as the current impulsive wave progression to the downside has not been finished yet. Nevertheless, the current level is good to add to the existing open sell orders with a SL above 142.41 and TP open for now. Another level worth of consideration for both types of traders is the level of 139.88 with SL above the level of 140.51 and TP at the level of 139.25 with a possible downside extension.