YOKU update: major 3/c up underway?

Last week I mentioned in the daily updates that the daily bollinger bands on YOKU were very tight and that a big move was to be expected. Well, we go that today. with a +10% up move, and the bollinger bands are now expanding while price is hugging the upper band. You know this story by now: classic setup! 🙂

Anyway, we can count 5 waves up off the late april low (red i,ii,iii,iv,v) forming yellow 1/a (major wave degree); which almost hit my initial set 1st target zone (not shabby or what!?). But, we don’t know yet if this a 1st wave or only a larger correction of an even larger down trend; an a-wave of an abc up, so we’ll have to treat it as both options. Trading this setup means being conservative is the right way to go: assume it’s an abc up, where wave c then can be equal wave a (100.0; lower purple arrow: $37.50), 1.382x wave a (138.2, middle purple arrow: $45ish) or the 1.618x extension (161.8, upper purple arrow: $50ish). As such it’s prudent to take partial profits first at 100.0, set a stop loss and see what happens. For now we should set sail for the 1/a top.

YOKU update 8102015

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