IBEX Short Term EWP Update

By: TheWaveTrading | Fri, Jun 29, 2012
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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.

IBEX Chart
Larger Image

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.

IBEX Chart
Larger Image

Have a great weekend

 


 

TheWaveTrading

Author: TheWaveTrading

TheWaveTrading

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.

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