General overview for 23/01/2017:
The top for the wave 1/a (green) has been established at the level of 122.94 and the market is not unfolding in an internal corrective cycle. The invalidation level for this cycle is the bottom of the wave (4) (blue) at the level of 120.53. The sharp decline towards the old weekend gap (marked on a chart as a gray rectangle) has been labeled as wave 2/b. Currently, the market is trading below the weekly pivot at the level of 122.14 and only an impulsive v-shape reversal from current levels above the wave 1/a top would indicate the corrective cycle is over and wave 3 (green) is in progress.
Support/Resistance:
123.74 - WR1
122.94 - Intraday Resistance
122.14 - Weekly Pivot
121.65 - Intraday Support
121.34 - WS1
120.53 - Invalidation Level
Trading recommendations:
Day traders should consider opening buy orders only due to uncompleted wave progression to the upside. The SL for all open orders should be placed below the level of 120.53 and TP should be left open for now.
