FTSE 100 Could Run in a New Bearish Leg
|FTSE 100, in its 12-hour chart, moves in the upper line of a potential triangle structure in progress. The current bullish segment of the sideways formation tests the previous high reached on past December 27th.
The scenario corresponds to an alternative Elliott Wave count of FTSE 100, which considers the current sequence of a potential triangle structure in progress.
According to this count, the British index could be running in a wave 4 of Minor degree labeled in green. At the same time, the price could be advancing in a wave b of Minute degree marked in black. If this scenario is correct, the completion of the bullish leg that began on October 03rd at 7,006.6 pts could end soon.
A short position will be trigger if the price drops and closes below 7,597.4 points, which could drive to the British index to find as a first profit target at 7,532.3 points.
The potential bearish movement could extend its retraces to 7,427 pts until 7,266.5 pts.
The invalidation level of our bearish scenario locates at 7,722.4 pts.
Trading Plan Summary
Entry Level: 7,597.4 pts.
Protective Stop: 7,722.4 pts.
1st Profit Target: 7,532.3 pts.
2nd Profit Target: 7,427.0 pts.
3rd Profit Target: 7,266.5 pts.
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