The YEN: what's next

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ANALYSIS

The present rally of the USDJPY (now at 113.50) started on Sept 8th, 2017 and  should temporarily top around 115.6-116.0. The subsequent retracement could bring it back to 112-111 before resuming the uptrend.

ELLIOTT WAVES

The red trend line on the historical chart and the magenta trend line on the monthly chart represent the 69 y/o historical trend line drawn from level 320¥ through the tops at 280¥, 265¥ and 126-125¥.

That trend line is about to be crossed (breakout) around the 116-119 level by the present uptrend.

The monthly chart shows a huge retracement  a-b-c on the making where wave-a and wave-b are fully deployed already. Conversely, Wave-c is actually unfolding right now and should top around 150-165. Others think it will top at 230.

The weekly chart reveals that the present uptrend - started in June 2016 - has already completed 4 waves up.  Wave-5 should reach level 127 as a minimum.

The daily chart shows wave-4 and the unfolding of wave-5. The 4-hours chart reveals that we are approaching the top of wave-3 (in blue, font 12) around 115.6-116.0.

Historical chart, click to enlarge

Monthly chart, click to enlarge

Weekly chart, click to enlarge

Daily chart, click to enlarge

4-hours chart, click to enlarge

EURO: what's next

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ANALYSIS

Although the Euro (now at 1.181) is retracing down to 1.1773-1.1762 in the very short term (1-hour chart), it should be able to resume its limited uptrend to 1.1932 in five  waves (4-hours chart). At that level, the dominant downtrend (daily chart) will resume its course to 1.1459.

ELLIOTT WAVES

The monthly chart reveals that the EURUSD is presently unfolding a wide wave-four upwards, which is usually a very articulated a-b-c. Given that wave-a is complete, we now need to focus on the trajectory of wave-b.

Wave-b should drop the Euro to 1.1220. This should be followed by the wave-c rally to 1.24, although the final theoretical target is actually 1.3016. The blue horizontal lines mark the possible targets/supports/resistances.

The weekly chart shows that wave-b has already started its way down from the top at a. See the targets at 1.1459 and 1.1220. The blue line at 1.0889 is actually a Fibo Cluster and a very possible target too.

The daily chart displays the possible tops at 1.1930-32 which will be followed by the lows at 1.1327-1.1299 and 1.1220.

The 4-hours and the 1-hour charts reveal the short term lows at 1.1773-1.1762, followed by the top 1.1932-34.





Monthly chart, click to enlarge

Weekly chart, click to enlarge

Daily chart, click to enlarge

4-hours chart, click to enlarge

1-hour chart, click to enlarge

ASX: is this the final top?

Hi Traders,

The futures of the ASX 200, the SPI 200 (now at 5828) might have staged the last rally. If this is the much expected top (note the exhaustion gap in 4-hours chart ), it should be soon followed by a sharp correction to the major support at 5320-28.

ELLIOTT WAVES 

The daily and 4-hour charts show a huge round formation started on May 1st, 2017. This kind of pattern is usually time-symmetrical. Check the magenta lines and the vertical lines on the daily chart. 

Placing the centre of the round formation at the lowest low at 5592, we have 60 days from the centre to the highest top on the left, and 60 days from the centre to the highest top on the right.

After the same number of days have passed, a new trend usually starts.

On a much bigger scale, the monthly chart reveals that the SPI 200 performed a huge a-b-c retracement from the low in March 2000.

The weekly chart also shows an a-b-c retracement up.

Moreover, it reveals that the present downtrend actually started around mid-March, 2015 at 6010 and made the lowest low at 4643 on Feb 2016 (wave-1). 

This, in turn, was followed by an a-b-c retracement rally to 5944 on April 30, 2017 (wave-2).

The latter was the very last top of the SPI 200 and it marked the completion of retracement wave-2. Note that the gap between 6020 and 6102 has never been filled so far.  



Monthly chart, click to enlarge

Weekly chart, click to enlarge

Daily chart, click to enlarge

4-hour chart, click to enlarge

EURO: What's up

Hi Traders,

The EURUSD (now at 1.1838) should bounce back to 1.1857 but only to resume the correction down to the next support at 1.1774. Overall, this correction could go on down to the area 1.1327-1.1299 (theoretical targets: area 1.1449-1.1425 and especially the area 1.1220-1.1208).

ELLIOTT WAVES

The big picture is explained in the monthly and weekly charts which revels that the Euro is unfolding retracement-wave-4 to 1.3016 with an a-b-c pattern. The theoretical targets of wave-b could either be at 1.1453-1.1424 or even at  1.1220. At that point, the new wave-c-rally to 1.3016 would start.

Letter a was placed to indicate the completion of the first leg of the a-b-c retracement up. Those waves would be the three components of wave-4 ending at 1.3016.

The daily and 4-hours charts show the target of wave-b at 1.1934-1.1932 as well as  the target around 1.1774. The 1-hour chart also displays the target at 1.1857.



Monthly chart, click to enlarge

Weekly chart, click to enlarge

Daily chart, click to enlarge

4-hours chart, click to enlarge

1-hour chart, click to enlarge

HANG SENG INDEX: END OF THE LINE

This analysis has been further updated on Oct 9, 2017.

Hi Traders,

Dark storm clouds are gathering over the Hang Seng Index (now at 28,324) which just completed the whole set of Elliott Waves up. The HSI could start soon a sharp correction. First target around 26,000.

ELLIOTT WAVES

The monthly chart shows that the HSI started a huge wave 4 at the end of Sept 2004. This wave is usually made of 3 legs (a-b-c). The first two (wave a and wave b) are now fully deployed. Wave c downwards is on the making right now. Unfortunately, it can be a catastrophic correction. 

Note the possible  incoming targets around 26,000.

The weekly chart shows the double top that confirms an imminent reversal. Usually, the incoming wave c is a sharp downtrend made out of 5 waves. 

The daily chart reveals 9 waves up which are equivalent to a regular set of 5 waves up. Ralph Elliott used to label 9 waves wherever the correct labeling was  too hard.

The 4-hour and the 1-hour charts show two exhaustion gaps and the start of the new downtrend.



Monthly chart, click to enlarge

Weekly chart, click to enlarge

Daily chart, click to enlarge

4-hour chart, click to enlarge

1-hour chart, click to enlarge

ASX 200: END OF THE LINE

Hi Traders,

The SPI 200 (now at 5660) seems to be close to the end of the line and the rats are leaving the sinking boat.

Although a small rebound to 5700-5730 is still possible, the SPI 200 is singing the swan song which could be followed by a deep dive to the major support at 5320-28.

ELLIOTT WAVES 

The daily and 4-hour charts show a huge round formation started on May 1st, 2017. This pattern is usually quite time-symmetrical.

Given that the centre of the round formation is the lowest low at 5592, we have 36 days from the centre to the high on the left, and 37 days from the centre to the high on the right. See the vertical lines. After the same number of days have passed, a new trend should start.

On a much bigger scale, the monthly chart reveals that the SPI 200 performed a huge a-b-c retracement from the low in March 2000.

The weekly chart also shows an a-b-c retracement up. It reveals that the present downtrend actually started around mid-March, 2015 at 6010. In fact, the low at 4643 on Feb 2016 was followed by a retracement rally to 5944 on April 30, 2017.

The latter was the very last top of the SPI 200 and it marked the completion of retracement wave 2. Note that the gap between 6020 and 6102 has never been filled.  

Finally, the faith of the SPI 200 is quite correlated to a possible downtrend of the AUDUSD. The drop of the ASX might be significantly mitigated if Australian Dollar is driven below the 0.70 level by the action of the markets or by the Central Banks (FED or RBA). Conversely, the SPI 200 would sink vertically.




Monthly chart, click to enlarge

Weekly chart, click to enlarge

Daily chart, click to enlarge

4-hour chart, click to enlarge

GOLD: what's next

Hi Traders,

Gold (now at 1333) topped at 1336.82 and missed my target at 1337.3 by a whisker. After a limited retracement - theoretically, to 1322 or 1312 - it should resume the uptrend to 1532 or 1628.

ELLIOTT WAVES

The monthly chart  suggests that Gold is performing an a-b-c to 1532. The weekly chart display a set of possible targets:

- 1337
- 1433
- 1532 (my favourite)
- 1628.

The 4-hour chart  shows that Gold just started a wave extension. The 1-hour chart displays the targets at 1322 and 1312.




Monthly Chart, click to enlarge

Weekly Chart, click to enlarge

Daily Chart, click to enlarge

4-hour Chart, click to enlarge

1-hour Chart, click to enlarge

IS THE WTI OIL WARMING UP FOR A GOOD RALLY?

Hi Traders,

We might have some interesting weeks ahead as the WTI OIL (now at 45.75) is approaching the targets. 

The OIL is only inches from completing the whole set of waves down, being the theoretical target at 45.59-45.34. If this analysis is correct, we could witness the start of a new rally that could take it to 61.50 (see the weekly chart). 

ELLIOTT WAVES

The weekly chart displays the blue horizontal lines as possible targets. The daily chart shows the likely completion of wave 4 by hitting the target at 45.59-45.34. The 4-hour chart shows the recent low at 45.60 and the a-b-c that shaped wave 4.

NOTE: There might be another small ripple down - which will be visible on the 1-hour chart - before the start of the rally.




Weekly chart. Click to enlarge

Daily chart. Click to enlarge

4-hour chart. Click to enlarge

1-hour chart. Click to enlarge

OIL flexing the muscles

Hi Traders,

WTI OIL (now at 48.65) is sitting on an important support/resistance. After a small drop to $48, it should move to a much higher ground. It could hit $61 soon and maybe $66-$68. Gann analysis suggests a final target of $75.

ELLIOTT WAVES

The weekly chart shows OIL is staging 3 major waves up. Wave 2 is complete and wave 3 just started.

The daily and 4-hour charts reveal that we just started minor wave 5, maybe to 51.65. The 1-hour chart shows the completion of wave 4 and the start of wave 5.




Weekly chart. Click to enlarge

Daily chart. Click to enlarge

4-hour chart. Click to enlarge

1-hour chart. Click to enlarge

GOLD to top and reverse ?

Hi Traders,

GOLD (now at 1284.35) topped and reversed. At the moment, it's not clear whether this is a just a retracement to 1251-53 or it's the start of a real downtrend. Many traders remain cautious.

Gold weakness might be due to the recent Chinese ban on overseas investments. If this is the case, Chinese money simply dried up. 

However, as all major stock indices head South, money could be either re-directed to commodities (included Oil, Gold, and crypto-currencies) or simply to the USD and the CHF. If the market picks the first group Gold will rise. Conversely, Gold dives. 



ELLIOTT WAVES

The weekly chart shows that Gold topped around 1300 by completing wave 2. The daily chart shows a nice shooting star which usually is a reliable reversal pattern.

Finally, both the 4-hour and the 1-hour charts display a remarkable reversal candlestick (top right).




Monthly chart. Click to enlarge

Weekly chart. Click to enlarge

Daily chart. Click to enlarge

4-hour chart. Click to enlarge

1-hour chart. Click to enlarge

15-min chart. Click to enlarge