PCS has been on our trading radar, and so far the calculations have been looking great. The usual bad news has been insignificant to our projection and as usual, just prior to latest move higher, there were reports speculating the downtrend continuing.
This past Thursday February 25, 2010 we could see that MACD spiked significantly and a wave 3 top could have been put in. We hit our short term profit level, shown in our trading signals post. We were anticipating a correction, and we are getting that now.
There were a few corrections that we could get in the wave 4. A flat correction, a triangle or irregular. Because the trading action forced PCS past a 38% correction quite easily we could rule out the flat correction and an irregular. We anticipate that the next corrective trade in MetroPCS will be a triangle. Yesterdays low is key to forming this triangle.
The chart below pinpoints the projected price points that PCS should trade within before making a breakout higher to its wave 5 high. I extended the chart to project the price motion, however the time frame in which this triangle may form is not relative to the extension of the chart. As always, your trading time frame is key to timing entry and exit points and reading the MACD relative to the Elliott Wave projections made.
