DJIA Breaks Elliott Wave 2-4 Trendline

DJIA broke proposed 2-4 TL dating back to 1/2013.


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Continental Resources : Earnings

Continental Resources Reports 55 Percent Production Growth And 46 Percent EBITDAX Growth In Third Quarter Of 2012

Read more about Q3 from the Company's website.

A screen shot of the weekly chart shown above was printed out on 10/26/2012 where a trendline break and  a thrusting bar to the downside. Earnings was set to be released on 11/7/2012. 

Fast forward and we see that price tested the under-side of the trend line and was rejected. Today, we should see the market reaction to earnings. While I have not yet applied elliott labels. Downside fib extension clustering,  agreement with the .618 fibo as well as chart support make this a key area that I will be focusing upon as I apply the Elliott Wave Principle to the charts.  

Look for a follow up post on my findings but by all means, don't wait for me. Learn by doing.

Best of Trading

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ElliottwaveLive is not an investment advisory service or broker dealer. None of its contributors are registered investment advisors, licensed stock brokers or CTA's. The author may hold short term and long term positions in the futures, stocks and ETF's discussed herein. The author may also trade around those positions which may be in direct conflict with your positions. Complete trade disclosures of the contributor’s holdings are posted at www.elliottwavelive.blogspot.com. See Trader Disclosure. 

Trade at your own risk. The blog site, Newsletter and all other information, material and content accessible from this Site (collectively, the "Content")  provided herein provides the context for market analysis with respect to a market's, a security or a commodity's general position utilizing the Elliott Wave Principle. The Content contained herein are the opinion and general comments of the author and is based upon information that Mr. Sinibaldi considers reliable but neither ElliottWaveLive nor he warrants it's completeness or accuracy and it should not be relied upon as such. Mr. Sinibaldi or ElliottWaveLive (collectively, referred to as “EWL”) are not under any obligation to update or correct any content provided on this website. Any statements and or opinions are subject to change without notice. The content and comments contained herein neither purports nor intends to be, specific trading advice. It has been prepared without regard to any particular person's investment objectives, financial situation and particular needs. Information should not be considered as an offer or enticement to buy, sell or trade. 

A more and comprehensive Risk Disclaimer and Disclosure Statements is available within the left margin of this blogsite.   

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Fair Disclosure Notice: I do not have a position in any of the aforementioned futures markets or securities related to this article.

Gold: A Critical Juncture

The weekly chart provides my preferred and alternate wave labels as well as the equivalent 10 and 40 week sma's (50-sma and 200-sma day equiv.) . Also of key interest to me is is that the trendline from 4/2009 continues to be probed and supportive of this market. As such, it is in my opinion that, while I haven't provided any bearish wave count, a failure of non elliott technicals , such as a break of the trendline and 40-week sma, could initially draw price to where w.(3) = 1.618 w.(1) at 1344.3.  

In addition, I showed this chart on Oct 19, 2012 and the cyclic turn of 11 and 22 months. Read the initial post

The October high may be MONEY given the elliott work that I have provided. If so, Gold Bulls are about to be ambushed. 

Let's See what Happens. 

Best of Trading

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ElliottwaveLive is not an investment advisory service or broker dealer. None of its contributors are registered investment advisors, licensed stock brokers or CTA's. The author may hold short term and long term positions in the futures, stocks and ETF's discussed herein. The author may also trade around those positions which may be in direct conflict with your positions. Complete trade disclosures of the contributor’s holdings are posted at www.elliottwavelive.blogspot.com. See Trader Disclosure. 

Trade at your own risk. The blog site, Newsletter and all other information, material and content accessible from this Site (collectively, the "Content")  provided herein provides the context for market analysis with respect to a market's, a security or a commodity's general position utilizing the Elliott Wave Principle. The Content contained herein are the opinion and general comments of the author and is based upon information that Mr. Sinibaldi considers reliable but neither ElliottWaveLive nor he warrants it's completeness or accuracy and it should not be relied upon as such. Mr. Sinibaldi or ElliottWaveLive (collectively, referred to as “EWL”) are not under any obligation to update or correct any content provided on this website. Any statements and or opinions are subject to change without notice. The content and comments contained herein neither purports nor intends to be, specific trading advice. It has been prepared without regard to any particular person's investment objectives, financial situation and particular needs. Information should not be considered as an offer or enticement to buy, sell or trade. 

A more and comprehensive Risk Disclaimer and Disclosure Statements is available within the left margin of this blogsite.   

======================================================================

Fair Disclosure Notice: I do not have a position in any of the aforementioned futures markets or securities related to this article.

Illustration of RSI Patterns

Using indicators to confirm my wave count is an integral part of my trading arsenal. The wave count has been removed from this chart.  

There are many ways I use RSI and other momentum indicators in my work; therefore, I briefly want to touch upon the subject and not get into a full blown account of how to use RSI. I'll save that for another day.

Drawing your attention to the RSI indicator which is made up of the standard setting and a 9-period sma. I've drawn in trendlines which in this case provides me with an objective way to measure oscillator resistance against a maturing wave count. 

As you can see by this chart, price and RSI resistance came together at the most recent high.  The decline in price from 13523 has drawn RSI to the lower level of bullish support (40) , and trendline support. If it breaks its bearish. 

As an exercise, label the chart and see how RSI can assist you in building a case for your wave counts.

Best of Trading