In this technical blog, we’re going to take a quick look at the charts of FTSE. FTSE is giving us pull back, correcting the cycle from the March low. The price structure from the June 8th peak is incomplete at the moment. It shows lower low sequences which makes it bearish against the 6298.8 peak. In the charts below, we’re going to explain the Elliott Wave structure and trading setup.

FTSE Elliott Wave 1  Hour  Chart 9.14.2020

The current view suggests that the Index is correcting the cycle from the 6298.8 peak. Recovery is having the form of Elliott Wave Zig Zag Pattern that should ideally complete at 6075.33-6203.45 ( sell zone). Correction is incomplete at the moment, we expect another marginal push up to complete 5 waves in (c) leg as well. However, we should be aware that the sellers zone ( blue box) is already reached at 6075.33 and turn can happen any moment.  At the Blue Box area, we expect sellers to appear for a decline toward new lows or 3 waves pull back at least.  Invalidation of the sell trade would be a break above 1.618 fib extension: 6203.45. Once the price reaches 50 fibs against the (b) blue low, we should make short positions risk free.

FTSE Elliott Wave 1  Hour  Chart 9.14.2020

Eventually, FTSE gave us another leg up within the blue box as expected and complete 5 waves in (c) blue leg. It found sellers right at the blue box area: 6075.33-6203.45 and gave us a nice decline from there. At this stage we see wave ((b))) recovery completed at the 6125.8 peak. However, it needs to make a break of 09/04 low to confirm the next leg down is in progress.  Members who sold the index are enjoying profits in risk-free positions.

Keep in mind market is dynamic and the presented view could have changed in the meantime.

(Click on image to enlarge)