Right now i'm anticipating a little bit pullback for retracement before the market continues it's bullish rally since 8 July 2009 at 146.88 where the major support lies. GJ is now rallying from 146.88 where it started the 1st wave to 152.28 then it retraced beyond my 61.8 Fibonacci Retracement, down to 147.1 where it completed its 2nd wave. According to my Elliot Wave analysis based on a book titled Overview of Fibonacci and Elliot Wave Relationships by Marc Rinehart, 45% of the time wave 3 will push to between 1.618 to 1.75 of wave 1's length and 30% of the time between 1.75 to 2.618 of wave 1's length. Currently the market has rallied a bit beyond my 1.75 Fibonacci Expansion (FE) hence i'm anticipating the completion of wave 3 will be topped at 2.618 FE at 161.74 or nearest fibo at 161.93. By looking at the current momentum shown by Stochastic Oscillator on timeframe 4 hour, the market is nearly overbought. Hence i'm anticipating a slight pullback to 154.9, where it becomes a strong support after acting as neckline during last month's pattern Head n Shoulder before it continues its rally to complete wave 3. Either it be completion of wave 3 (overshoot beyond FE 1.75) at new high last week at 157.6 and now performing wave 4 or it is just performing a typical retracement. Further break beyond 154.9, wave 4 will be taken into account where next support lies at 152.34. On the other hand, the market will continue its rally to the said target, 161.74, 161.93 or this year's new high at 162.6.
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