FTSE Short term Elliott Wave structure shows Primary wave ((4)) ended at 7196.58 on 9/15 low. Rally in Primary wave ((5)) up from there has internal subdivision of a zigzag Elliott Wave structure. Intermediate wave (A) of this zigzag structure is in progress as 5 waves impulse where rally to 7327.50 ended Minor wave 1 and bounce to 7289.75 ended Minor wave 2. Rally to 7527.59 ended Minor wave 3 and Minor wave 4 pullback ended at 7493.68. Minor wave 5 of (A) higher remains in play and could see more upside before ending the cycle from 9/15 low.
Chasing the rally higher at this stage is risky since cycle from 9/15 low is mature and Intermediate wave (A) could end soon. After Intermediate wave (A) is complete, expect Index to pullback in Intermediate wave (B) in 3, 7, or 11 swing to correct cycle from 9/15 low (7196.58) before the rally resumes. We do not like selling the proposed pullback. We favor Index to extend to a new high after Intermediate wave (B) pullback has ended later as far as pivot at 9/15 low stays intact.
FTSE 1 Hour Elliott Wave Chart
Zigzag is one of the most popular Elliott Wave corrective structures. It’s subdivided into 3 waves and labelled as ABC. The first leg wave A has an internal subdivision of 5 waves and it can either be an impulse or a diagonal. The second leg wave B can unfold in any corrective structure. Finally, the third leg wave C also has an internal subdivision of 5 waves and can also be either an impulse or a diagonal. Zigzag therefore is a 5-3-5 Elliott Wave structure. Wave C typically ends at 100% – 123.6% of wave A.Back