flashplayer said:
Pretty sure Heineken means that the bears are going to test the bulls hard after this insane rip-roaring run that we've been on lately. Note the big drop on the chart above from the iii wave to the iv wave.
Also - WWR up to 1.319 premarket. Time to roll my Oct 17 covered calls and see if I can capture some of that increase.
Remember, it's just a blueprint, not a prediction. When you have periods of sideways meandering, followed by periods of Price spikes and then quick drops that overlap, that kind of price action is not what you would consider in it's entirety as impulsive. So I'm currently blue printing this whole thing as a large diagonal move to the upside. The difference between a diagonal move and a more impulsive move is that the diagonal move consists of constant overlap as it grinds upward. But you also have to keep in mind that this is still technically a penny stock, and that sentiment has just not decided for sure that it's going to go all in to the upside. This is very typical of two potential things happening and we have to decide which one we wanna bet on.
The first is an accumulation type of move where the believers and the doubters both have heavy sway. That's what leads to the overlap. And in that kind of regime the believers eventually outweigh the doubt, and the confirmation will be when the general market wakes up and jumps in. If it's the other case, then all of this is going to top out and it's going to sell hard to new lows eventually. I'm cautiously on the side of the believers. But because of the structure of price and the nature of how often it overlaps, you have to consider that both are possibilities. That means you have to be wise at points of resistance and strategically bold at points of support. You have to understand risk management and use appropriate stops.
Confidence in my chart is maybe 50%. It's really hard to use a strategy (Elliott wave) that is most effective when sentiment is constant and volumes are high when the stock just hasn't had much sentiment. That's why I believe this is the first phase accumulation of a multi-year pattern. But like I said, the failure points are more accessible than a stock that would have already broken out and cleared obvious points of resistance.
