Jan 162011
 

Following the humongous rally last Thursday/Friday it is time to go back to the slightly bigger pricture and see if any trade can be considered. A low risk trade that shows up is to sell around 1.3535 witha close by stop. The reason is the most recent low at 1.2864 can be considered an irregular B wave and we are currently in a C wave. Typically, the ‘C’ wave will exceed the top of the ‘A’ wave by a fibonacci relationship of the distance the B wave went below the prior low. Also, 1.3537 ties in with a potential target for the 5th wave of the “C” wave itself. As always, we have to protect ourselves with asuitable stop. Mine will be around 1.3547. Good luck.

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