The wave ((b)) of the abc correction might be finished. We are in the areas where wave c, wave (y), and wave ((b)) should end. From here we can expect a reversal.
Hi Andy. Thanks for the analysis. Forgive me for asking but I am curious, with price breaking below the 4hr support at 7400 that was formed last month. Why would price not then push down to the next support and bounce of from there instead? I am not a student of divergence so maybe there's something I am not seeing - if you can answer I would be grateful. Thanks.
AndyCuckoo
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@danstarr, I do not really rely on support and resistance. It happens often that the smart money is breaking the resistance, taking the liquidity below the resistance (stop loss levels or new shorts) to fuel the move in the opposite direction (which would be up for the FTSE). I find Elliott Wave Theory more reliable to trade. Of course, I can still be tricked but generally I find it more reliable than only support and resistance. What I see now for the FTSE looks like a nice but uncomplete ABC correction to the upside. I can be wrong of course. Let's see if we get this wave ((c)) to the upside.
danstarr
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@AndyCuckoo, Thank you for your response. I am more of a price action with support and resistance confluences trader but I see the value in exploring other ideas that add merit to what I am thinking as I analyze the charts. I see some similarities in how I mark up my charts with how yours look so when there's a difference in opinion I like to get your point of view. Thanks again.