FTSE Elliott Wave Technical Analysis – 14th October, 2013

Last analysis of FTSE expected a little upwards movement to a very short term target at 6,515, before downwards movement towards about 6,280.60.

We did not see the small upwards movement I had expected, but overall price did move lower to reach 6,316.91, 36.31 points short of the target for the week.

A very clear channel breach indicates that the correction is now over.

Click on the charts below to enlarge.

FTSE Elliott Wave Chart 2013

Within intermediate wave (4) it is possible to see this structure as a completed zigzag.

The following upwards movement for minor wave 1 of intermediate wave (5) is ambiguous. It can be seen as either a three or a five. This wave count sees it as a five.

Downwards movement for minor wave 2 is now a complete double zigzag. The second zigzag in the double made only a slight new low below the first, but did move price lower.

At 7,406 minor wave 3 would reach 1.618 the length of minor wave 1. This target is about 30 trading days or sessions away.

Within minor wave 3 no second wave may move beyond the start of the first wave. This wave count is invalidated with movement below 6,316.91.

FTSE Elliott Wave Chart 2013

A channel drawn about the second zigzag in the double labeled minute wave y is now very clearly breached up upwards movement. The downwards correction is likely to be over and the next wave up should be underway.

Within minor wave 3 I would expect at some stage over the next week to two a second wave correction for minute wave ii. Minute wave ii may not move beyond the start of minute wave i. This wave count is invalidated with movement below 6,316.91.

2 thoughts on “FTSE Elliott Wave Technical Analysis – 14th October, 2013

  1. Lara, I am impressed by your SP analysis.
    As a Brit, and long term FTSE follower, I have the following observations:1) FTSE often leads the SP. 2) My alternate FTSE count from the 2009 low is an A-B-C rally with a B wave triangle.
    The impulse wave from the triangle finished in May followed by the first super-cycle impulse wave down. FTSE is now in corrective wave 2 to test the May high. The end result is the same, after a (failed?) retest of the high, downside pressure.

    1. That’s an interesting wave count. I’m not convinced about the triangle though, the B wave within it would be extremely deep, although it is valid.

      If you have a chart I’d been interested to see it, you could email it it me at admin@elliottwavestockmarket.com

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