POL PROBABLY IN WAVE 'A' OR '1'

This is an update on our POL wave count shared earlier, we have modified the wave count looking at the formations and excluded the possibility of the current wave being a wave C.

If the wave count is correct then we are in 5 or Y of wave 1 or A.

With reference to my last idea of POL in which we got greedy and took a loss on 50% of our positions and are still holding 50% of the long positions for long term. Since are preferred wave count is still showing some downside which can reach 500-475 range and even further, It is not wise to just let our investment sit there and wait for the upward movement which can take months from now. Therefore we have decided to hedge our current position with a small portion of short sell in POL futures.

Will share the short sell trade setup tomorrow morning

Let see how this plays, Good Luck!

Disclaimer: The information presented in this wave analysis is intended solely for educational and informational purposes. It does not constitute financial or trading advice, nor should it be interpreted as a recommendation to buy or sell any securities.

Note

Short Sell Trade Setup:

Entry level: 525 - 535

Stop loss: 545

Target: 490 - 475

Note

Update:

Yesterday our short sell trade did not get activated as we our looking to short futures at 535, alternately if prices move above 545 today then this impulse wave down gets invalidated and it will bring us back to our long trade setup in which we already hold positions.

Currently we have placed a short sell order at 535 which is still pending

Trade active

Short Sell Trade Setup:

Entry price: 535

Stop loss: 545

Target: 490 - 475 (eyeing 480)

Note

Update:

Most probably I won't be online tomorrow for the whole day to guide you thru live trade, so for those who are following stick to the trade setup

Place your stop loss order at 545 and close position once price reach 490-475 zone

Note

Update:

There's a strong possibility that prices will reach 510-505 range and bounce back from there back to 530-535 level and then it will start to go towards our target 490-475 area.

we have decided to move our target to 510-505 range because if our wave count is correct it will be a fair trade giving us a 4.67% gross profit

Note

Update:

Prices made a low of 525 on Friday, let see if we reach our target today

Note

Update:

Since the prices did not bounce back from 510-505 range and bounce back from 523 back to 530-535 level, now it should start going down towards our old target 490 - 475 area. If the wave unfolds as predicted then it might even go towards 460 - 450.

This 4th wave have been consolidating as expected which might have ended or will end soon, prices can still bounce back up from 518 - 520 level for one more leg up to 535 again but most probably 4th wave have finished and prices should decline now.

Target: 490 - 475

Note

Update:

Prices broke above 535 but the prices closed back under the 535 level on the hourly chart, if our wave count is correct then the 4th wave is over now and the downside should start. Alternately prices need to stay above 535 level and make some green candlesticks with good volume to mark the end of wave A or 1.

We are sticking with our preferred bearish count until our stop loss gets taken out at 545.

Note

Update:

Prices have started to decline as expected. POL-APR contract will get squared up at tomorrow closing and since price is not moving in futures contract due to no/low volume therefore we will have to close our positions prematurely.

Note

Update:

As the prices in POL-APR future contract did not moved comparatively to its regular market price and since not a single trade has been taken place in the future contract today. We have decided to close 50% of our positions at 525 and will close our remaining 50% positions at day end today.

Let see if the order gets filled

Trade closed: target reached

We closed all our POL-APR positions on yesterday closing at 521 because the future contract will expire today.

Entry price: 535
Exit price: 521
Profit @ share: 14
Gross profit: 2.61%

Note

Update:

POL has finally reached 490 area, since market will remain volatile, although we might see some bullish spikes but overall trajectory is down and 475 is the next support area prices will target

KayJay

Disclaimer

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KayJay