General overview for 16/07/2014 10:40 CET

The corrective cycle in purple wave 4 might be considered completed. The golden trendline is still providing resistance. Nevertheless, this corrective cycle might get a little more complex if the level of intraday support at the level of 137.48 will not be clearly broken. This price action would mean a possible triangle pattern in purple wave 4 which is in progress. Besides, more range trading between the levels of 138.08 and 137.48 should be expected. On the other hand, a clear impulsive breakout below the level of 137.48 opens the bearish trade range. The target levels are on weekly support pivots at the levels of 137.17 and 136.67.

Support/resistance:

136.67 - WS2

136.17 - WS1

137.48 - intraday support

138.00 - weekly pivot

138.08 - intraday resistance

Trading recommendations:

The last wave to the downside is needed to complete the impulsive progression. So, short orders opened at the beginning of this week and earlier should be still kept open.