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. Index has made a new high above Minute wave ((w)) peak 7515.1 and it’s now showing incomplete 5 swings bullish sequence from 6/30 low. As far as pivot at 7338.2 holds, expect FTSE to extend higher towards 100% Fibonacci extension area at 7552.2 – 7602.59.
FTSE would be then ending the first leg of the move to the upside in Minor wave 1. From there, a pullback can take place in Minor wave 2 which should then find buyer’s again in sequence of 3, 7 or 11 swings for further upside provided the pivot at 7302.7 low remains intact. 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.