May 24, 2022
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USDJPY - BUY STOP - 24th May 2022

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Good morning team,

 

The USDJPY wicked down and took our SL on the pip. However, the higher low is giving us the green light to re-load the position. The previous analysis regarding a corrective rally is still valid as we can count an ABC decline, with 5 sub-waves in wave C. Wave A on the larger degree has possibly completed, and a corrective counter-trend should now occur which would set up wave B on the larger degree. Once the wave B counter-trend has completed there is a possible short trade opportunity from the 129.30 resistance zone. We will see how this unfolds over the coming days.

USDJPY 1 Hour Chart

 

Trade Setup: BUY STOP, execution price 127.82, stop loss 127.16 and take profit 129.22.

Stop loss: 66 pips

Take profit: 141 pips

March 29, 2022
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PayPal - BUY STOP - 29th March 2022

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Evening team,

 

For anyone who has been watching PayPals stock price over the past few weeks will know the price has been hammered down by roughly 70% from the 309 peak back in July 2021. The steep sell off alone should have you watching for a reversal opportunity due to the large over reaction in the market. From an Elliott wave perspective we are eyeing up a bullish counter trend that could last a number of months. As a whole, the financial markets are rebounding and running higher to the upside which should help lift all of the underlying assets that make up the indices.

PayPal Weekly Chart (log scale)

As you are most likely aware, there are waves on the larger degree and waves on a smaller degree. From the count above we can count a possible marjor market cycle top – a complete 5 wave bull market. The sell off has also setup a 5 wave decline into a possible wave A decline.

There has been a clear 5 wave decline into the 80 support zone which is also the support zone of the wave 4 back in April 2020. During a corrective pull back the wave 4 support zone is generally uses as a buying platform. The MACD is cross over to the upside indicating bears are running out of momentum.

PayPal 1 Hour Chart

Trade Setup: BUY STOP, entry price 119.22, stop loss 95.22 and take profit left open to run, initial target zone at the 194 resistance. 

This is a swing trade setup, and I am expecting it to run for a couple of weeks.