General overview for 14/01/2015 07:05 CET

Despite the striking price/momentum divergence, the market is still making lower lows. So, the Elliott wave count has been adjusted to the new data. On larger time frame, the outlook hasn't changed yet and the preferred count is still the same: the complex corrective structure labeled as WXY brown, that consist of an irregular flat cycle, double three cycle and, at last, zig-zag cycle. The projected level now for the corrective cycle to be completed is at the level of 137.48. Invalidation of the larger scale impulsive cycle comes with the level of 134.12 violation (wave 1 red and wave 2 red overlaps). As long as this level is not violated, the bias remains bullish.

Support/Resistance:

137.17 - WS2

137.49 - 78%Fibo

137.36 - WS1

138.88 - Intraday Resistance

139.45 - Intraday Resistance

140.09 - Purple Impulsive Count Invalidation Level

Trading recommendations:

Daytraders and swingtraders should consider opening the buy limit orders at the level of 137.50, with SL below the level of 135.91 and TP at the level of 144.11 (longer term TP, more suitable for swingtraders).