Monday, June 8, 2015

JP Morgan as Caught on Elliot Wave

Prices are tending high in a non-overlapping impulsive trend. The recent rally which I labeled as the third wave of the impulsive move is ending in an expanding diagonal formation.


 In expanding diagonal, wave 5 is greater than wave 3 which is greater that wave 1; wave 4 is greater than wave 2 and the connecting trendlines, upper and lower, show that prices should continue the rally to $70 where a minor dip to $65 region  is very likely before a further rally to probably $72.







Alternatively, price could be forming a double zigzag formation which could have a reversal bearish impact. Price could fall below $58 and deeper in what could be an impulsive larger wave bearish move.



In the two wave count, price is expected to fall after, perhaps, further rally.



The extent of the fall will determine which count is valid. A minor dip to $65 follow by further rally will validate the first count while a break below $65 could validate the second count.


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