Today, Sugar illustrates my point as the market topped on 2/2/11 and is now working a five wave decline. Currently, w.3 of w.(3) is very mature and I expect w.3 to complete at 20.46, where w.v of w.3 = .618 {w.(i-iii)}. Once complete, w.4 will unfold in a sideways correction where w.4 = (.383-.5) w.3 between 20.39-24.31. Also note that the previous w.iv of one lesser degree surrounds these key areas and provides a possible short trade setup as a print above 25.47 (previous w.1) invalidates the count and tells us where we are wrong.
We can also find a similar pattern if the iPath Sugar ETF. Without repeating myself, the key targets are the same as the Sugar futures contract.
I hope you found this information helpful and ....
Best of Trading
SG_F has reached the 20.46 downside target. W.v of w.3 looks very mature although there may be one more minor low reached to complete the wave structure.
ReplyDeleteEarlier today I mentioned that w.3 may not be complete. When looking at the forward month contracts they indicate an acceleration of trend to the downside providing additional evidence that w.3 isn't complete. An additional target where w.3 = 1.618 w.1 at 19.17 should be considered. Should this objective be met, then the w.4 terminus points will need to be recalculated.
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