SLE

This was a good example of how a 5th wave can be a bit unpredictable and fail to reach the target. Today's drop confirms the end of the initial move up though there should be a bounce off 7p as this was the intial breakout and will also be the backtest of the trendline break.

What we're looking for here is a nice 3 wave move down. The question is: how far will it go? Normally after an initial move up after a long downtrend we'd expect something like a 61.8% retrace but the diagonal triangle nature of this rise, coupled with the failed 5th subwave in it allows for the possibility of a full 100% retrace so we need to expect somewhere between 6p and 4.6p as the target for this retrace. And there was a gap up on 19th April from the 5p close which didn't get properly filled so we'll keep one eye on that too.



dl.dropboxusercontent.com/u/20815047/SLEdaily21_05_13.gif

Looks like it might be heading back to 6p or is this a shake prior to news? I make 6.95p as the line in the sand on the daily (as potentially being the bottom of wave 4 of this move)

Anyone still in this looking for 8.7 or has everyone bailed?

That's how I see it, yes.

Could be wrong of course. I do think there ought to still be a final push to 8.7p though.

Ok - So from TA perspective this is potentially a wave 2 corrective wave if 8.7 not taken out with Fibs something like attached - Many thanks

screencast.com/t/s6nixZZ2j

Hi SE,

No, IF it doesn't go any higher than this then I'd expect a drop back to the 61 Fib at 6p. If it does go on to 8.7p then that Fib level rises to 6.2p.

Best just to wait and see though.

Hi Jackozy - I managed to squeeze out 8.29! It would appear that it did not quite break through 8.5 area - would you agree it is possibly heading down to consolidate around 7.7 before another attempt at 8.7 - Many Thanks SE