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Originally Posted by Summerset
Amend to double at 6865. This brings the average to 6814. Keep stops at 6814 + compensation for negative premuims. 1st target 7084, 2nd target 7260.
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We will break our double into 2 portions.
Add 1/3 to inital 6763 position at 6910
Add 2/3 at 6877
Place stop at overall entries average.
1st Target 7080, 2nd at 7260
Analysis:-
Since last week the double top neckline on 4hr was broken confirming a Wave 4 on weekly. Remember that we expected a Zigzag W-4 in alternation to the Flat W-2 on weekly. Hence our entry target of 6865.
On the current 4hr chart - shown below- FE100% has been reached. Negative WSI momentum is nuetralizing and could turn positive next week. In anticipation of an end of "C" here, we are incrementally adding a small portion at 6905-10, and in anticipation of "C" continuing to FE161.8%, we will continue to incrementaly add till 6877.
6877 is more favored as a there is a confluence of fibs at this level on both weekly & 4hrs. Our addition at 6905/10 is to enable partial profit taking at 6980, should a 4hr upwards retraction ensue, and the W-4 correction develop a complex sideways form before making 6877.
We need of course to take some partial profits to off set the negative trade premuim.
Profitable Trading