C of 2 with triple RSI divergence, and bull flag

10 Tem 2017

This seems to be a trend reversal on 1D. We just finished a correction of a strong impulse move with corrective Elliot's count, and triple RSI/price divergence indicates that there should be no new bottom. The last fall was followed by very strong rally on heavy volume in 1 of 1 of 3 and a bull flag/ no supply in 2 of 1 of 3. These are favorable conditions for a long trade with good risk/reward (we place SL slightly below the flag, and hope to catch a strong bull trend).