Elliott Wave View: FTSE Rally Likely to Find Sellers

Elliott Wave View of FTSE suggests the Index ended the cycle from August 12 high as wave ((a)) at 5778.40 low. The subdivision of the decline unfolded as 5 waves impulse Elliott Wave Structure. Down from wave X high, wave (i) ended at 6036.13 low. Wave (ii) bounce unfolded as a flat correction and ended at 6173.48 high. Index then resumed lower in wave (iii), which ended at 5824.04 low. Afterwards, the bounce in wave (iv) ended at 5996.24 high. Finally, the push lower in wave (v) ended at 5778.40. This also ended wave ((a)) in higher degree.

Currently, Index is doing a bounce in wave ((b)) to correct the cycle from August 12 high. The bounce is unfolding as zigzag correction. Wave (a) ended at 5985.26 high and wave (b) pullback ended at 5868.87 low. Wave (c) is currently is progress and can do another marginal high before ending wave ((b)) in higher degree. The bounce has reached blue box area, which is 100-161.8% extension of wave (a)-(b) at 6075-6203. This area should see sellers appear for more downside or 3 waves pullback at least. While below 6298 high, bounce in 3,7 or 11 swings is expected to fail for more downside. The target to the downside for FTSE is the 100-161.8% extension area from June 8 high against August 12 high at 5483-5638.