In early November 2010, these ETF’s were spotted to be making some turning point lows and highs. Particularly, the UGL chart was trading in step with an Elliott Wave sequence.
This chart shows the wave count of UGL from the 22.86 low to the 36.10 high as a wave 1. The previous analysis explains the larger time frame projections as well. Note that some of the price highs have changed since these projections.
Still, the previously projected price high of wave 5 (70.91) appears to have held, bigger picture in mind, and a correction is occurring in UGL. Subsequently a rebound in the GLL would then occur.
However, it is worth mentioning again as noted in the last post, that using larger time frames, projections show room to upside for UGL before the following, or current, correction could continue with any length.
Following this side of the analysis, this initial pullback in UGL appears at the moment to be of an internal wave structure and not of the larger time frame.
Using price points of 43.10 projected (3/24/10) and 56.76 actual (5/12/10) as an internal wave 1 magnitude of wave 5, 61.89 is a potential flat correction price point and 54.84 is a triangle correction price point. Currently the flat correction is in play.
Wave 5 using this internal wave count is projected to reach 92.52. Reference the chart below for a diagram of the internal waves.
Also note that the larger time frames wave 3, which would be the internal wave 5 just mentioned, is projected to reach 96.40. This larger trend is shown in this chart and also explained in the previous post. The similarity in these price projections suggests that the current correction may not break the uptrend, and the larger trends wave 3 may not be complete.
Additionally, triangle corrections can at times extend beyond a projected .618%. In this case, if the current flat correction internal wave 4 does not hold it is possible to see UGL correct towards its internal wave 2 price point of 48.02 and still maintain trend towards the wave 5 targets.
