The Big Boys, page-355

Hi Sandash. You're certainly welcome to post on Elliot Wave here. This thread is for the mid-to large caps and I hang around here as a technical analyst looking for people to talk about this stuff. I gave up on the XJO a year or so ago when it just got filled up with a lot of rubbish. Keep this collegiate and relevant and you're very welcome here.

As for Elliot Wave, of all the technical tools I've come across this has to be the most powerful and accurate. The trick is to just use it as a big picture road map on the monthly chart and then other TA tools below that. Occasionally I use the weekly chart for further analysis of subwaves if needed. Once you take it down to the daily chart and try to pick up every sub sub wave it comes less and less effective.

If you let me know who the poster is objecting to it I might take them on for fun.

As for CBA I have some Elliott Wave marked up on my chart from some time back but not actively trading it. First glance just now looks like a Wave 4 pullback is complete and it should head up. That's first glance, I need to do more analysis.

The trouble is the fundamentals are poor and the broader market looks like a peak of Wave B and pulling back medium to long-term. You'll see above my charts on XJO and MQG on this. I'm having trouble believing that CBA can go for a powerful drive up into Wave 5 with this background. So one of the only times I can recall that I actually don't trust what the EWs are telling me on CBA. For that reason I stopped trading it and will let it play out more to get further confirmation.

The key is to see if it can now get an uptrend and see whether this fails and if it can get over the prior high. But that will take some months. It's at a bit of an inflection point anyway so be cautious. You could possibly do a short term long trade here if you got an entry confirmed as long as you move to the sidelines once it gets up to the 50% retrace level of the prior range and watch it.

Anyway, put up your chart anyway and I'll have a look. When I get some time I might examine CBA more closely and see if I can reach a clearer conclusion.