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
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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
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Have a great weekend




Author: TheWaveTrading


Contact: If you would like to contact the author, you can e-mail him at thewavetrading@gmail.com

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