Even if you don´t trade IBEX I suggest to follow it during the next
2 weeks since it will give us clues regarding the longevity of the Equity indices
counter trend rebound which began at the June 6 lows.
Why 2 weeks?
Because during the week of the 4th of July US holiday the equity market usually
has a bullish bias therefore price could complete the corrective rebound the
following week.
Following the long-term scenario I have posted yesterday price should be involved
in unfolding a counter trend rebound wave (B).
Judging for the internal structure of the move from the June 6 low, in my
opinion, it is reasonable to expect a Double Zig Zag; hence price is now unfolding
the wave (A) of the second Zig Zag.
The equality extension target for the wave (Y) is at 7484.
In the next daily chart I have highlighted a potential target box for the
wave (B) in the range 7305-7505.30
The next resistance zone is at 7184-7186
There is a caveat that warns some caution since today´s candlestick
is already above the upper BB; hence, I think that it is reasonable to expect
a pullback at the beginning of next week.
Contact: If you would like to contact the author, you can e-mail him
at thewavetrading@gmail.com
The main objective of this project is to share my views on several markets
and asset classes.
In the initial stage TWT website will be a free service.
My main focus will be the equity market with SPX being the leader but I will
also follow US equity sectors, major European indices, fixed income, currencies
and commodities markets.
My analysis is based upon traditional Technical Analysis, Elliot Wave guidelines
and investor sentiment.
My goal is to establish the most likely path that the price of a particular
asset will undertake and profit through ETF instruments both on the long and
short side and mainly with leveraged ones (2 x & 3 x).
The advantage of ETF investments is that it allows getting involved in equity
indices & sectors, currencies, fixed income, commodities etc.
Therefore the main purpose of TWT will be to establish investment strategies
regardless if the market is in an up trend or in a down trend, leveraging
the chosen scenario while managing the risk by establishing protective stop
losses.
Hence I will always define the risk, I will try to let winners run the wave
and I will cut the losses if my strategy is wrong.
Disclaimer: The content of this article is for educational purposes
only, the information supplied is not a recommendation to buy or sell any
security or financial instrument.
Thewavetrading.com nor the owner can not be held responsible for any loses
occurred from the information provided within the website.
The Information supplied cannot be copied or reproduced without the permission
from the owner.
Circle Us