Telecommunication has seen over the passed days some decent runs. I am not totally without them since I spotted ie. JDSU, EXTR and CIEN but didn´t notice on time for instance Alcatel-Lucent.
This one I did and also posted it in here, it is still one of my favorite because it does not have something I call “divergence valley” with MACD. It means basically reversal confirmation for EW if EW itself can confirm it as well.
There is 4 type of EW reversal divergence exist with it for me when we speak only higher-high / lower-low divergences. More is better in this business, particulary with ending diagonals and any ending technicals.
There should be at least 2 “valleys” exist. With 3 Valleys it makes it strong indicator if EW agrees with it as it is case in here and usually indicates more powerfull reversal. 3 consistent lower lows for price while 3 consistent higher highers for MACD, then EW nails the rest.
Most often what happens is that first impulse response is relative quick if dealing with ending diagonals with it, but then much more boring times starts and chart start to contract with very small retracement anymore before actual more agressive waves takes it.
It can be also W1/W2 scenario but AB is alternate for it meaning C upside reaction. Personally I never didn´t underwrite that rules contracting triangle would be seen only with B, W4 or X waves – have seen it many times as W2 also – as one alternate for it.
Whatever is the case or alternate would expect more upside reactions to come also for TNDM, in the longer run – in short term not so interested because I don´t think based for the chart history TNDM or should I say EW could breake this yet with any bearish alternates.
3 Silicon Valley MACD´s with EW.
