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FTSE 100 Elliott Wave View: Pullback In Progress
Short term FTSE 100 (UKX-FTSE ) Elliott Wave view suggests that Minor wave B ended on 6/30 low 7302.7 and the rally from there is unfolding as a double three Elliott wave structure where wave ((w)) ended at 7515.12 and wave ((x)) pullback ended at 7338.2. Index has reached 100% from 6/30 low so cycle is mature and Minor wave 1 has ended at 7551.85. Index is currently pulling back in Minor wave 2 to correct cycle from 6/30 low before the rally resumes. As far as pivot at 7302.7 low remains intact, Index should find buyers in the sequence of 3, 7, or 11 swing at 7361.91 – 7427.76 area for further upside. If pivot at 7302.7 low fails during later pullback, the Index would be still remain in the same cycle from 6/2 peak. Index should then extend the correction to the downside. We don’t like selling the Index.
FTSE 1 Hour Elliott Wave Chart
(Click to enlarge)
7 swings structure is one of the most common patterns in the theory of New Elliott Wave & it is also mainly know as double three Elliott Wave pattern. Market find that very often nowadays in many instruments in almost all time frames. It is a very reliable structure by which we can make a good analysis and what is more important is giving us good business inputs with clearly defined levels invalidation and destination areas.
The image below shows what Elliott wave pattern Double Three looks like. It has (W), (X), (Y) and 3,3,3 internal structure, which means that all these 3 legs are corrective sequences. Each (W), (X) and (Y) are made of three waves, which are having the structure W, X, Y in lesser degree as well. Elliott Wave principle is a form of technical analysis that traders use to analyze the cycles of financial markets and market trends forecast by identifying extremes in investor psychology, high and low prices, and other collective factors. Important to Note that 3 waves could also be labeled ABC (5-3-5) structure as well. How are labeled 3 waves it depends on the internal price structure subdivisions waves i.e. whether the price action is corrective or motive.