Using a simple correction of down to the uptrend line would target 83.75. Using Elliott Wave (EW), one could expect a correction to take an ABC formation with A already underway. One guideline (not a rule) is that the prior fourth wave low could be a target which would be 85.13. That would also be about 75% of the move up from the May 10th hammer low at 84.16. There would then be a move up for wave B and then wave C would take it down further, possibly to the uptrend line. As it unfolds over the next few days, I'll be able to refine this. There's an EW count on the weekly chart that hints it could go lower but let's not worry about that yet. Finally, one could look at a 50% retracement of the move up from November which would bring it to 81.44 but that’s too extreme for right now.
Here's the daily chart:
© Dianne Fecteau, 2010. No part of this material may be reproduced in any form, or referred to in any other publication, without the express written permission of the author.
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