• 480 days Will The ECB Continue To Hike Rates?
  • 481 days Forbes: Aramco Remains Largest Company In The Middle East
  • 482 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 882 days Could Crypto Overtake Traditional Investment?
  • 887 days Americans Still Quitting Jobs At Record Pace
  • 889 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 892 days Is The Dollar Too Strong?
  • 892 days Big Tech Disappoints Investors on Earnings Calls
  • 893 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 895 days China Is Quietly Trying To Distance Itself From Russia
  • 895 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 899 days Crypto Investors Won Big In 2021
  • 899 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 900 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 902 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 903 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 906 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 907 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 907 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 909 days Are NFTs About To Take Over Gaming?
  1. Home
  2. Markets
  3. Other

IBEX: The Ending Diagonal

The Triangle scenario that I posted on March 25 has not panned out instead, in my humble opinion, from the December low price has formed an Ending Diagonal.

If this idea is correct from the April 14 low IBEX is unfolding the last Zig Zag up that will complete the converging pattern.

IBEX Ending Diagonal Daily Chart
Larger Image

While a Triangle is the pattern that occurs prior to the final thrust that concludes an Elliott Wave pattern, an Ending Diagonal is the last pattern of an impulsive advance, since it occurs in the wave (5), or of a corrective structure, since it is formed by the wave (C) of a Zig Zag or the wave (Y) of a Double Zig Zag.

An Ending Diagonal therefore is a termination pattern.

If you have read the updates of the long-term Elliott Wave pattern that I have been posting you should be aware that I have been suggesting that the advance from the July 2012 is the second countertrend wave (B) within a Double Zig Zag from the November 2007 high. If this Elliott Wave count is correct, once this wave (B) is in place, the following down leg should retrace the entire advance and even establish a lower low (Barring an extension higher with a Triple Zig Zag).

IBEX Monthly Chart
Larger Image

It is unquestionable that from the July 2012 low price has been rising with a corrective structure, moreover if the Ending Diagonal pans out we would have a convincing evidence that price has completed a Double Zig Zag (7-wave structure).

Once an Ending Diagonal is over usually it is followed by a sharp decline which retraces at least to its origin therefore a move back to the December low is almost a done deal.

IBEX Weekly Chart
Larger Image

If we zoom in the short-term time frame from the April 14 low price should unfold a Zig Zag up. If this is the case the wave (A) has been established last Thursday, the current pullback, assumed wave (B) should not breach the 50 dma, which stands 10206. If it bottoms at the 50 dma the following wave (C) up that will complete the Ending Diagonal would have an equality extension target at 17754.80.

Therefore next week I will be looking for a long entry but I will be clearly more interested in shorting this thing once the Ending Diagonal is done.

IBEX Ending Diagonal Daily Zoom Chart
Larger Image

 

Back to homepage

Leave a comment

Leave a comment