Though Paypal now has Bitcoin as wind to its back, the price chart is facing some headwinds. The 7 wave up trend is a corrective wave "B" wave in Elliott wave terms (it would be labeled w-x-y). This implies a retest of the $170 low. If prices don't cut towards $170, then this may be the "B" wave of a triangle. Either way, the presure will remain to the...
If the economy needs stimulus this bad, then the health of it isn't good. Earlier today, President Trump said he wanted efforts placed on the Supreme Court justice in lieu of hammering out a stimulus plan. Stock fell hard. Two weeks ago, I shared an Elliott wave chart that suggested a hard fall in $DJI could be coming soon. My wave labels are slightly...
Gold's price behavior hasn't solidified whether a meaningful top is in place and the US Dollar is about to drive gold lower...OR...whether a final and terminal 5th wave in gold is moving higher. The Elliott wave picture is mixed at the moment. Keep an eye on this blue trend channel. The black labels suggest gold runs up to new highs in a 5th and final wave. The...
DXY has room to run higher. The Elliott wave pattern suggests we are in a third of a third higher . If so, then DXY should continue a trend towards strength. There is an orange trendline formed over calendar year 2020 in the way. Breaking above the orange trend line is a sign of strength. Failure at the orange trend line or failure below 93.33 will bring...
Love it or hate it...Bitcoin's price chart suggests a better buying opportunity may be on the horizon. The position of this triangle and the tap of the upper price channel line suggests this market is poised for a correction. Most of the time when a double zigzag like this appears to start a new trend, the entire pattern is completely retraced. Be on the...
$DJI looks to be working on a wave (iii) impulse pattern lower. The current rally appears to be wave ii of (iii). The rally is nearly over and is expected to hold below the wave (ii) high of $28,364. Initial target is in the $22,000-$24,000 range. Depending on the structure of the fall, lower levels are in sight such as the March 2020 low of $18,213 and...
It appears Ether has hit an important level upon its August 2020 high. The recent crypto weakness may have more room to run especially if the US equity weakness continues. When ETHUSD is in a bear market, then switch over to Bitcoin. Be mindful that in the USA, any sale of crypto for any reason triggers a tax event. As you can see above, when ETHUSD hits a...
Here's a longer-term view on EURUSD. Depending on how you draw the resistance trend line over the past 12 years, this line crosses in price between now and 1.20. The 61.8% fibonacci retracement of the 2018 down trend comes into play in the 1.17-1.20 zone. The higher probability Elliott Wave count in my opinion is that EURUSD finds resistance nearby, then dips...
Hi, Bitcoin's sideways grind is meant to lull traders to sleep. There are some bearish patterns bubbling inside this range that points prices towards the low 8000's. We have a completed 5-3 pattern where a bearish impulse wave (the five) is followed by a complex correction higher (the three). This 5-3 pattern began on June 22 and completed on July 8. This...
Though EURUSD has made quite the run higher in recent weeks, this up trend is mature at high risk of reversing. Using Elliott Wave Theory, it is difficult right now to determine if the bullish impulse wave (one of the 5 basic Elliott Wave patterns) that created this up trend is over and if EURUSD is beginning to make a run at new lows (below 1.06) or if we see...
This recent surge in gold may be the finishing touches on a 4+ year up trend. Gold appears to be in an ending waves at multiple degrees of trend. Perhaps gold taps the upper end of this channel, but it doesn't have to. After this impulse wave completes, a very large correction may take over. This correction may coincide with US Dollar strength. Look for the...
Earlier in June, I laid out an Elliott Wave count for Bitcoin which proposed a correction deeper to 5500-7000. Zooming in on an intraday chart, it appears as though Bitcoin is getting ready to dump to 8,000 and possibly lower. Bitcoin has been adhering to the mid-line of a longer term price channel (yellow dotted line). It has decisively fallen below this line...
Ether is primed for at least a 15% correction. After a completed impulse wave, I am anticipating a corrective structure down to $150-$200. This would represent a 15-35% correction depending on how deep into the box it corrects. Longer term HODL'ers will have an good opportunity to buy at these lower levels. Of course, no guarantees this will happen. I'm...
Interesting level here in USDCAD. The primary Elliott Wave pattern suggests a deeper cut, perhaps down to 1.33. However, we have horizontal resistance turned to new support from May 2017 in the way. Which pattern prevails? There is likely enough support to pop prices higher a little. So long as USDCAD is below the May 22 high, a break down below 1.38 is possible.
Hi, Elliott Wave provides a structure to frame the market from. The price reaction today in Bitcoin occurred in a price zone of wave relationships for a 'D' wave of a large Elliott Wave triangle. If this is the correct scenario, then Bitcoin likely softens to 5500-7000. Below 8,600 may be an early warning signal of deeper losses coming. Below 7,454 signals a...
Hi, EURUSD has hit our previously cited upside target...now the the minimum waves are in place on this recent up trend for EURUSD. Therefore, it is at risk for a reversal to the downside. Wait for the previous 4th wave to break before entering short. First target is near 1.0875. Second target is near 1.0635. There is a larger final target near 1.02. I'd give...
EURUSD has been stuck in a sideways consolidation. This consolidation appears to be a triangle. Triangles are tricky to trade because they can extend further than expected. My current higher probability view is that we are in the final leg of the triangle. Once the final leg finishes, EURUSD may jump higher to 1.11 and 1.13. 1.11 is near the 61.8% fibonacci...
Dow Jones Industrial Average appears to be moving higher in a 'c' wave. Within the 'c' wave, we appear more than half way through the impulse. If the trend continues higher, the area near 27k may offer a reaction. Regardless, my view is that the next major move is likely to the downside. Wave iv of 'c' or the wave 'b' low can offer a short entry on a break...