Rule-4 Trading: LC_June 22, 2012

1. LC will go down to at least 1.35. That's because of the "bearish R-4d" (red) on wave ending 6/18/2012. Note the candlesticks: bearish doji star as well
2. Tentatively, however, we expect a bounce up after the dip, since we have a "bullish R-4c" (red) on wave ending 6/21/2012
3. I say "tentatively" because the data we have is not enough, and we still do not know exactly how low LC will correct to.
4. We see the characteristic behaviour of a triangle, and I am expecting two other ":c3" waves for wave-c and wave-d respectively of this current wave-4 triangle from 6/11/2012 to present
5. It's always prudent to enter a trade at wave-c in case this triangle will turn out to be a flat
6. Although unlikely, the possibility that LC will still correct down to 1.01 to 1.06 levels still remains. This is because from 4/26 onwards, LC can still form a 3-3-5 to complete wave-E of this running triangle ABCDE.
7. Since this entire running triangle (ABCDE) from 12/8/2011 is a terminal pattern (3-3-3-3-3), LC will surely retrace back to the beginning of this entire wave-c of the larger flat (from 8/24/2011). That's 1.81
8. Pls supply your own TP. You already know the post-pattern action of flat with a double failure!