Fincantieri Wave 5 Completed awaiting ABC Correction move SHORT?

14 lip 2017

It seems FCT is in the completion phase of a Wave 5 on the Minor period and has also reached a critical resistance/trendline area and in my opinion, we are nearing the start of a corrective wave/pattern via an ABC wave. I've marked out major support area where I believe is most likely the area where we will see the first part of determining where price action will lead. If Support is broken (which I believe the primary path), the ABC correction could be invalidated and another pattern may form, thus we should see a downward bearish trend, possibly to the lowest trendline/channel area, marked as the primary target zone.

It is also possible that the ABC correction may form and we would see another Impulse move in a bullish direction to continue towards the 1.34 Euro price area, however I see this as a secondary option, only because the primary target, not only presents a structured move, but also because I see a FLAG pattern forming, thus seems to me the most probable move. I don't see much on the fundamentals side regarding this stock, however should more information become available to put FCT in a positive light, I see the primary path being the most probable.

Additionally, Ketchup, Mustard, Water and Mayo EMAs are all flared as well as TDI shows it has almost reached the overbought position as well as a probable Sharkfin forming, which may prove wave 5 / price action to go a little higher before initiating the corrective pattern. In my opinion, this would be a highly probable SHORT before I'd take a LONG and hold long term.

P.S. Saluti a Gino e Valter.

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