An upwards breakout was expected after some more sideways movement. The upwards breakout has come a little more quickly than expected, but movement above 2,590.09 in the first hour of trading was a signal that the main hourly Elliott wave count was correct. Members then should have used the first target, which remains the same.
Price continues to move sideways in a very small range, which at this stage fits the alternate Elliott wave count better than the main Elliott wave count. Both wave counts remain valid.
A small inside day is inconclusive.
Members are given guidance on how to draw a trend channel on the hourly chart, and which price point will differentiate the two Elliott wave counts for the short term.
A new high above 2,539, within the second hour of trading today, indicated the alternate hourly Elliott wave count was more likely correct and price should continue overall higher, which is what happened for the rest of the session.
Downwards movement was overall expected, but it was expected that price should have a short term bounce first. Downwards movement is now choppy and overlapping, suggesting an Elliott wave diagonal may be unfolding.
A consolidation or pullback was expected to continue. Price has moved lower today and remains within the consolidation zone.
Price has moved slightly higher, to complete an outside day, and remains within the invalidation point for the new main Elliott wave count.
A signal from On Balance Volume for Friday sees the main and alternate hourly Elliott wave counts swapped over.
The mid to long term picture remains the same, but the short term picture for next week is now changed.
A sharp downwards movement today remained above the invalidation point on the main hourly Elliott wave count, and the long lower wick on this candlestick is interpreted as bullish.
Although bears were able to push price sharply lower, they could not hold the lows and they could not make a new swing low below the low of the 2nd of November.
The upwards trend continues overall, and classic technical analysis remains very bullish.
Members are advised to go with the trend until price proves it is over.