Guest Commentary: FTSE Index Facing Stern Resistance
- FTSE's Corrective Elliott Wave Structure
- Potential for 3-Wave Downside Pullback
- Sell in Preparation for New, Lower, Entry Point
London's FTSE Index broke to new highs on Wednesday (Feb. 19), and the preferred view at this time is for a dip to 6608, which would complete wave X.
While above the B-wave low at 6716, expect more upside toward 6854 – 6886, which would complete wave (A). From there, however, the FTSE Index should turn lower to correct the entire rally from the 6416 low.
We don’t like selling the FTSE Index in wave (B) and instead favor buying dips in three, seven, or 11 swings once wave (A) has completed.
By Eric Morera of Elliottwave-Forecast.com
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.