Expecting a Further Depreciation in Major Indices


Recommended by Zorrays Junaid

Get Your Free Equities Forecast

Indices such as the S&P 500, the FTSE 100 and the DAX are currently in a decline since January 2022 high. From my analysis it seems like they are all in a medium-term bearish correction prior to a potential rotation.

Recently, these major indices have formed new lows within their bearish cycle by breaking through the most recent support areas. This will be demonstrated below.

S&P 500 – Daily timeframe

Chart prepared by Zorrays Junaid on Trading View

As per my above chart, price has broken through the red shaded support area which is the extreme of wave A. The S&P 500 can be expected to travel to the downside into wave C and the lower bound of the descending channel can be used as a support region. This is where price is expected to react but of course it is not limited to breaking through the channel to the downside.

FTSE 100 – Daily timeframe

A picture containing graphical user interface  Description automatically generated

Chart prepared by Zorrays Junaid on Trading View

The FTSE 100 is in a push down as it broke through the support around 7000 after it broke the bearish triangle in wave (B) of 4. Although this price action looks very choppy but in fact this is a Zig Zag pattern with a triangle in wave (B).

Although it may seem like the current price is in no-man’s land, but we can anticipate the minimum area price is potentially looking to reach is wave (C) equals the same length as wave (A).

DAX – Daily timeframe

Chart  Description automatically generated

Chart prepared by Zorrays Junaid on Trading View

Very similar to the FTSE 100 as the DAX also had a triangle in wave B. The triangle has been broken out from the downside and broke the support area which was sitting at the extreme of wave (B) of the running triangle. Running triangle’s wave B form a new price extreme.

The consequence of the break of support would be similar to the FTSE 100 where it is expected that wave C would at least reach the same length as wave A.

Trade Smarter – Sign up for the DailyFX Newsletter

Receive timely and compelling market commentary from the DailyFX team

Subscribe to Newsletter





Source link

Related articles

Elon Musk Sues Apple, OpenAI Over iPhone AI Deal

Elon Musk is suing Apple and OpenAI over a deal the businesses struck to carry ChatGPT to iPhone customers, in response to a lawsuit filed Monday with the US District Court docket for...

Ether Worth Enters ‘Perception Zone’ Following $5K All-Time Highs

Key takeaways:Ether’s long-term holder web unrealized revenue/loss indicator suggests the worth has entered the “perception” part.The market worth to realized worth suggests ETH is undervalued, with room to run towards $5,500.Ether’s rounded backside...

Robomart unveils new supply robotic with $3 flat payment to problem DoorDash, Uber Eats

Robomart, a startup that builds self-driving supply robots, is unveiling its newest robotic with an bold purpose of utilizing it to make on-demand supply worthwhile. The Los Angeles-based firm introduced its patented Robomart RM5...

NOIA speaks out after Trump halts practically full Revolution Wind challenge

After the U.S. Division of the Inside ordered all work on the practically full Revolution Wind challenge to cease on Friday, Nationwide Ocean Industries Affiliation (NOIA) President Erik Milito issued the next assertion:  ...
spot_img

Latest articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

WP2Social Auto Publish Powered By : XYZScripts.com