The FTSE 100 is currently working to form wave (2). It looks like a complex pattern. This scenario assumes that wave (1) already finished in January 2017 and the FTSE has been correcting since then. An irregular flat is a structure that may reach new highs as part of its subwaves. Therefore we label the June 2017 high as a B-wave.
The FTSE seems also to trace out an irregular flat as the ii°-nd wave of minute degree. We expect the FTSE to continue its correction to the downside soon.
We expect overall a relatively shallo correction. First target is around 7,100 points. Next ones the 6,700-7,000 area. We see this as a great "buy the dip" opportunity. Mid-term (after the current correction completes) we are bullish UK equities
The FTSE seems also to trace out an irregular flat as the ii°-nd wave of minute degree. We expect the FTSE to continue its correction to the downside soon.
We expect overall a relatively shallo correction. First target is around 7,100 points. Next ones the 6,700-7,000 area. We see this as a great "buy the dip" opportunity. Mid-term (after the current correction completes) we are bullish UK equities
Trade closed: stop reached:
The FTSE is as of December 21st most likely in an ending wedge pattern to the upside. Pls refer to our latest update on the FTSE from 21.12.17 here on Tradeingview!
Now the big question is if the pattern really plays out or not. If it does we should see an immediate reversal to the downside within the next trading days.
Otherwise our short term structure is invalid.