Last week MetroPCS seemed to be trading sideways in a B wave triangle, it’s obviously not trading sideways any longer. When will the turn come? We targeted the 5.96 level as support. Today’s trading supported that level so far and offered a good opportunity to start a position.
A closer look at the MACD shows that the trading in PCS could continue lower though. At the 5 minute trading time frame you can see that a wave 3 has completed. This is the most powerful price motion wave. The turn that is occurring now in the MACD begins to show the end of wave 4. A lower time frame should be used after the completion of this wave to find the exact turning point.
From the top of this wave 4 you should be able to measure the 5 waves of wave 5. It’s not completely clear if wave one of wave 5 has formed, but the resistance that was shown from 6.06 to 5.97 from this wave 4 top could represent a wave one magnitude. If this turns out to be the case, then PCS could trade to 5.74 area before a turn higher.