General overview for 31/05/2016:
The black impulsive count was invalidated due to overlaps of wave one and wave two. This is against the Elliott wave rules. Therefore, the new Elliott wave count was prepared to incorporate the latest developments. First, let's take a look at the 4H time frame count, where we can see that one more wave is still needed to complete the wave progression to the downside - wave C of wave Z. Moreover, we can see that the key level zone between the levels of 124.53 - 124.79 was not violated and the market is still trading below the golden trend line as well. So, according to the main count, one more wave down is needed to complete the cycle. But according to the alternative count, there is a possibility that wave C of wave Z had been already formed with the low at the level of 121.48. In that case, this is the invalidation line for the impulsive wave progression to the upside. To sum up, any breakout above the key level invalidates the main count and any violation of the 121.48 level invalidates the alternative count.
Support/Resistance:
124.85 - WR3
124.65 - Wave (b) High
124.23 - WR2
124.12 - Intraday Resistance
123.42 - WR1
123.10 - Intraday Support
122.82 - Weekly Pivot
121.99 - WS1
121.48 - Black Impulsive Count Invalidation Level
121.40 - WS2
Trading recommendations
All sell orders should be still kept open as the impulsive structure to the downside might still unfold anytime. The SL is still at the same place, above the level of 124.13.
