Eurostoxx Elliott Wave Provides Timing to Buy The Indices
|Last week, we talked about the Grand super cycle and Super cycle from 2009 low in UK FTSE and explained how it was supporting the idea of buy in the dips in the World Indices. In this video blog, we will take a look at Elliott Wave view of Eurostoxx Index in weekly time frame to determine the timing for the pull back in FTSE Index to end and timing to buy the World Indices.
Eurostoxx rally from March 2009 low to April 2015 peak was a 3 waves move that we have labelled as an Elliott wave zig-zag structure. A zig-zag is an “abc” structure in which wave “a” is in 5 waves, wave “b” is in 3 waves and wave “c” is also in 3 waves. This was followed by a 3 waves drop to 2672 in February 2016. Following this drop, Index tried to resume the rally but failed below April 2015 peak and started dropping again. Rally from February 2016 low to October 2017 peak unfolded as an Elliott wave FLAT structure and since then the Index has dropped again in 3 waves so far. Even when Index has not yet broke below February 2016 low, our proprietary distribution system is telling us that the pivot at February 2016 low has given up which means that level is likely to break and open extension lower toward 2531.22 – 1799.94 area.
As pivot at February 2016 low has given up, the current bounce in wave (( X )) is expected to fail and find sellers in 3,7 or 11 swings and decline should then resume as far as pivot at October 2017 peak remains intact. We know already that FTSE is correcting the cycle from 2009 low and Eurostoxx Index is doing the same. As Eurostoxx didn’t break above 2015 peak so it provides us with a clear floor on the down side and this floor comes between 2531.22 – 1799.94, once this area is reached, ideally FTSE and rest of the World Indices should also finish their pull back and find buyers to resume the rally for new highs or a larger 3 waves bounce at least.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.