Puda Coal Inc (PUDA)

[tatrader11]

Bailed at 7.25 mainly due to expected more market weakness, and PUDA not bouncing up very good.

This posted on RB.

Markets, looks like the 2nd hit 1100 marked end of "A" and low that followed is "a" of "B" downward correction with todays hi looking like "b" of "B" top, if correct we started "c" of "B" today. Need to see this next down move be capped at 1060 with at least a test of 1074 to mark the end of "c" of "B".

Then we go into final "C" up of ending [E] to complete {B} upward bear market correction.

As I have stated many times corrective patterns are often only known once complete. This last C wave of {B} looks to be a abcde raising wedge (ending diangle) which is very differant. Also add to that that E waves of ending diangles are well known to either trunicate, or overshoot. The wonderful thing is once they complete the pattern they become very good wave patterns indicating fast moves.

The raising wedge pattern completes when the bd trend line breaks. One should note the nice trend line up from the Mar low, thats the trend line that will confirm we are in {C} down when it breaks.