FTSE Elliott Wave View: Calling For Another Leg LowerHello Traders,
FTSE short-term Elliott Wave view suggests that the bounce to 7904.97 high on 5/22/18 peak ended in black wave ((1)).
Below from there, the index is doing a double correction lower in blue (W)-(X) to correct cycle from 3/23/18 low. Down from 7904.97 high, the decline to 7610.66 low ended the first leg of the pullback in blue wave (W) at 05/29/18 low (7609.7). The internals of blue wave (W) unfolded as an Elliott Wave Zigzag structure where red wave A ended at 7703.26, red wave B ended at 7738.46, and red wave C of (W) ended at 7609.7 low.
Up from there, the bounce to 7793.45 high ended the correction against 5/22/2018 cycle in blue wave (X).
The internals of blue wave (X) unfolded as double three structure where red wave W ended at 7772.12, red wave X ended at 7637.52 and red wave Y of the blue wave (X) ended at 7793.38.
Then down from there, the index has made a new low below blue wave (W) at 7610.66 low confirming that the next extension lower within blue wave ( Y ) of ((2)) has started.
While FTSE100 stays below 7793.38 high, any pullbacks higher is expected to fail in 3, 7 or 11 swings for another leg lower towards the areas of 7496.62 – 7426.56, which is equal legs - 1.236 extension area of blue ( W ) - ( X ) to complete black wave ((2)) correction.
Once the equal legs - 1.236 extension area of blue ( W ) - ( X ) reached, the index is expected to find buyers either for a new high or for 3 wave bounce at least. We don’t like selling it in the proposed pullback as the right side remains to the upside in the sequences of 3-7-11 swings
