FTSE Short-term Elliott Wave Analysis 12.1.2014

Index has been trending higher since forming a secondary low at 6448 i.e. wave (X). It has tested 0.618 – 0.764 ext area of (W)-(X) and has completed wave W of ( Y) at 6773. Wave “X” pull back is in progress as a 7 swing Elliott wave structure. Levels of interest on the downside are 100% ext of (( w )) – (( x )) at 6625 followed by 123.6 ext of (( w )) – (( x )) at 6599. If the lower level is exceeded then next level of interest would be 1.618 ext at 6559. We don’t like selling the Index and favour buying dips in 7 or 11 swings as far as pivot at 6448 low remains intact. Target for next leg higher would be equal legs of (W) -(X) at 6947. If pivot at 6448 low gives up in our system, that would negate the extension higher

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