BBY after earning... will it hold up?BBY still has to hit L3 marker for the HVF to complete. So there is a strong probability for a short setup. In contrast, there might be a possible Long 123 setup forming down the road as well. For a long position, entry might be @ prior resistances level round 35.44, otherwise if price action compromises support then further downside is expected. Note that 32 price level could be another entry point for long entry into a 123 for the 2nd wave. The narrative for BBY is bullish especially now since they finally seen an increase in online sales vol. But without any further research proceed with caution for the bullish narrative to change. Lastly technical analysis and outlook is subject to change, as indicators, patterns continue to develop and become more significant. Hence my analysis may be too early.
123pattern
LULU SCALING UP Possible 123 pattern. Earning announcement in Sep 8th. If your looking for a quick trade best to wait for 4th pattern to develop as an entry point to go long. 2nd options is aggressive and its shorting at the resistances level 3rd pattern, then exiting near (or reaching near) 4th pattern. Anomaly movement is no rally to the 5th pattern point, consolidation (horizontal pattern), or decline. However caution on false break tho, because the trend is your friend. RSI is oversold so possible pop to the 3rd pattern could develop from now (Aug) to Sep. If stock is up nearing earnings release then I expect 4 scenarios. For instance a positive announcement I expect a gap up and maybe an overreaching of pattern 3, followed by a declining developing a 4 pattern. In contrast, if the announcement is bad and LULU is around the price level of patter 3 of the channel I expect a gap down to the forth pattern in the channel. 3rd is if earnings announcement is mixed, which most likely still precluded to be negative either way then expect a decline. lastly, nothing will happen and the only movement is intraday noise - hence the fluctuation between patterns 1 & 2. Longterm trend may remain the same.
CADJPY SIMPLE ELLIOTT WAVE APPROACH (123)If you missed the short opportunity @ the 50% retracement of wave(1) , no need to worry as there is still plenty of opportunity left in this market.
For starters , "The Trend Is Your Friend".
We are currently experiencing LL's & LH's so lets stick with it.
Entry:
You can enter short @ the break of wave(2)'s Low
Stop Loss:
Above wave(3)'s high.
TP:
You can take profit @ the distance between wave (2) - wave (3) projected below the break of wave(2)'s Low , also the 161.80% Fibonacci Level.
Alternative more aggressive TP:
You can trail the stop candle by candle.
Happy Trading
-Supreme7