Copa Holdings | $CPA, Trade Updates

by Carlos Narváez | Nov 28, 2016 | RQLAB, Trade Ideas

Targets for the 3rd waves up on $CPA must be placed at 2.618 extensions, that’s what experience tells.

We Were trying to find out why we successfully downgraded our targets for CPA to 95-98 when the ideal target was 102.77 . Revising October 17th charts, this was due probably to the monthly pivot at 94 with 2.618 extension previously at 102.78 —now refined— to 102.97, so this gave us an average for 98.4 and we simply were more conservative and we sold 95.

The blue fibonaccis are practically the same that we sent on our update on September 20th, as shown in the following Chart:

We can see the hit to the 1.618 extension, and by taking a closer look on the daily chart we see that after that hit we got a pullback, chart here

that went to .236 retrace as seen here

since on this same chart you can see previous waves 2 and ii were really deep, we should not expect a deep wave iv, so even though we want the 78.50 area we might not get it and this would be confirmed once CPA moves above 100.47 with follow through above 102.22 and 102.97 then we will establish reasonable probable targets for CPA at 124 with daily average resistance at 118.97 that can be lowered to 114.12 based on the monthly.

We like the 78.50 area, because on the 1440 minutes chart, we have a buying area around the 76.79-75.74 range that matches the weekly buying zone. Additionally there is a monthly pivot at 75.  Under 76.79 support is 65-62, but that’s very unlikely based on current setup.

This is not an advise nor a a buy or sell recommendation