19/04/15 – EXPD NASDAQ – Friday’s Bearish US Market conditions had a severe effect on the setup for this potential Long trade with the price making a large movement down to form a new Low on this bearish Pull Back. By breaking through the previous support level it has broken some Elliott wave rules and is no longer classed as a Wave 4 pull back and in fact has the potential to go lower. This potential trade does not fit my criteria for a Wave 5 trade so therefore I have cancelled my Stop Buy order for EXPD Nasdaq. This is a prime example how a reasonably good setup can be spoilt by a heavy sell off in the markets and the reason why I am being conservative in my entry strategy during these very volatile market conditions that see huge swings from positive to negative market conditions sometimes on a daily basis. Chart as Below.
16/04/15 – EXPD NASDAQ – There are currently 7/9 of my “with trend” trade setup indicators in the green and with the 6/4 Moving Average high having to be crossed before entry there will be 8/9 on trigger. The Wave 4 pull back does seem to have found support at the Fibonacci 0.382 Retracement level taken between Wave 2 and Wave 3 extremes, but hasn’t taken out the TJ’s Ellipse yet so the price could continue to pull back towards the Fibonacci 0.5 Retracement level. With this in mind I have put together a conservative entry to take advantage of any moves out of this current bearish pull back trend channel. Stop Buy Order @ 47.37 which is out of the trend Channel, above the B pivot and above the 6/4 MA high for today’s bar position. Stop Loss @ 46.06 and the initial take profit limit @ 51.50, giving a Risk to Reward profile of 1:3. If this potential trade on EXPD Nasdaq does not trigger this week I may have to adjust the order. Charts as below.