FTSE 100 Expecting for New Raises
|FTSE 100, in its hourly chart, shows the corrective process after the 3--day rally, which drove it to an over 15% increase. The last upward impulsive sequence began on Monday 23rd, once FTSE 100 found buyers at 4,762.2 pts, which was its lowest level since August 2011.
The corrective sequence that the British index is developing seems similar to the first internal leg of a three-wave formation. The FTSE 100 index likely will complete its corrective structure near the 5,200 level, which corresponds to the previous key resistance level.
However, our main perspective points to an entry in the long-side, expecting the progress of a second upward impulsive sequence.
A bullish position will activate if the price rises and closes above 5,694.8 pts. In our conservative scenario, we expect an upward move to 5,928.7 pts. If the British index extends its bullish momentum, the price could advance until 6,217.9 pts, and even soar till 6,479.3 pts.
The level that invalidates our bullish scenario locates at 5,366.3 pts.
Trading Plan Summary
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Entry Level: 5,694.8 pts.
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Protective Stop: 5,366.3 pts.
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1st Profit Target: 5,928.7 pts.
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2nd Profit Target: 6,217.9 pts.
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3rd Profit Target: 6,479.3 pts.
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