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In my last article, the FTSE100 was drawing up a triangle which was supporting the overall bullish trend in the biggest picture. However, on the other hand I did warn that we that although a triangle is valid but that doesn’t mean it is a bullish triangle.
Instead, the triangle was supporting the temporary bearish sequence the FTSE100 including other indices such as DAX and SPX are unfolding within.
Let’s take a look at an updated Elliott Wave count on the FTSE100
As demonstrated here, wave 4 is now unwrapping as a Zig Zag with wave (B) as a triangle. Wave D of (B)’s key level that was sitting at 7131 has triggered this bearish triangle to indicate that another low into wave (C) of 4 is in the cards.
It has been established that the trend is bearish, so let’s discuss the momentum. As per the chart, the RSI is looking bearish but not oversold. MACD is showing a crossover, therefore, the momentum is clear that there is more room to the downside.
Analysts must note that a triangle within the Elliott Wave Theory indicates that the next impulse is the final impulse within the current sequence.
Let’s take a look at an updated Elliott Wave count on the DAX
I have previously demonstrated this chart that DAX is in wave B triangle to indicate that another push to the downside is within the near-term picture. With wave ((d)) key level sitting at 12603 has been broken which means the triangle has been triggered and a thrust can be expected.
Like the FTSE100, RSI is looking bearish but not oversold and MACD has more room to the downside to travel after the MACD moving average crossover.
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