Bottom line: FTSE bearish structure to remain intact until 7700 resistance holds. It seems to have carved an intermediary bottom at 5160 levels today. .
Technical Analysis:
FTSE bears remain firmly in control since 7700 levels earlier, but it might have carved an interim bottom around 5160 levels today. In the short term, a pullback rally could materialize towards 5900/6000 levels, before resuming lower again. If the drop continues from here, 4700 could be the next potential target for bears in the short term. Looking at the wave counts since 7904 highs, FTSE might have carved a larger degree Wave (1) or (A) around 6539, followed by Wave (2) or (B) termination around 7724 levels respectively. Wave (3) potential termination was around the 5500 mark but it has extended towards 5160 mark until now. Please note that Wave (3) would ideally travel up to fibonacci 1.618 of Wave (1) as highlighted here, around the 5500 mark. Since prices have dropped past 5500 mark, it could be possible that Wave 3 of (3) is an extension and might still be progressing. If the above counts are correct, FTSE might be close to terminating Wave 3 of (3) around 5000/5100 levels, before producing Waves 4 and 5. Traders might be willing to take some profits on the short positions taken earlier around the 5000/5100 mark and remain flat. If FTSE terminates 3 waves from 7904 highs, the drop would be corrective, indicating a fresh rally to resume higher over the next few months. Alternately, if we witness a 5 wave drop from 7904, it would confirm that the drop is incomplete and FTSE could dig further low after producing a counter trend rally. It remains to be seen if the drop completes into an impulse before traders might initiate fresh long to play the counter trend.
Prepared by
Harsh Japee, Technical Analyst.
FTSE Chart
MyFxtops 邁投 (www.myfxtops.com) -Reliable Forex Copy Trade community, follow the master for free to trade!
Disclaimer: This article is reproduced from the Internet. If there is any infringement, please contact us to delete it immediately. In addition: This article only represents the personal opinion of the author and has nothing to do with Mato Finance The originality and the text and content stated in this article have not been confirmed by this site. The authenticity, completeness and timeliness of this article and all or part of the content and text are not guaranteed or promised. Please refer to it for reference only Verify the content yourself.
Copyright belongs to the author.
For commercial reprints, please contact the author for authorization. For non-commercial reprints, please indicate the source.
MyFxtops迈投(www.myfxtops.com)-靠谱的外汇跟单社区，免费跟随高手做交易！
免责声明：本文系转载自网络，如有侵犯，请联系我们立即删除，另：本文仅代表作者个人观点，与迈投财经无关。其原创性以及文中陈述文字和内容未经本站证实，对本文以及其中全部或者部分内容、文字的真实性、完整性、及时性本站不作任何保证或承诺，请读者仅作参考，并请自行核实相关内容。
著作权归作者所有。
商业转载请联系作者获得授权，非商业转载请注明出处。
