The sluggish sideways trading may have an aggressive trader following the strength of today. A thirty minute chart LEAP is tracking its 200 day moving average nicely. However, on lesser time frames it has struggled to close above it and the recent correction is yet to be resolved.
LEAP has almost finished a B wave today of an ABC correction. What type of correction it is, is yet to be determined. A flat correction could occur in which case a move higher to 16.13 would be followed by a retracement back to the 38% retracement level of 14.40 before LEAP trades higher.
A simple correction could occur, in which LEAP would top here. Expected levels are 15.47 to 15.67, and then a retracement to a 62% level of 13.52 before a move higher.
The third option, is an irregular correction which we just discussed with AMR today as well. In this case LEAP would trade higher than its 16.13 high and then continue to its 62% level.
Finally, this being the first 5 wave move higher in LEAP from a 52 week low, its retracement could reach 100% of its wave 1 move even if a larger trend higher is to continue and should be kept in mind.
The chart below shows the various scenarios. Green represents the simple correction, blue the flat correction and purple the irregular correction. Best way to trade what will happen is wait until it is happening. Meaning, at this point we would want to anticipate each of these three trading scenarios and place a trade long on LEAP as the actual correction that does occur in real time presents itself clearly.
