FTSE

The recent pull-back has formed a zigzag. Here's my hourly chart...


dl.dropboxusercontent.com/u/7238706/FTSE...0Cash%20%281H%29.png

...it looks like it ended at 6,699 but, until we get a 5 way move in the opposite direction, there could always be an extension further down. For the time being it looks like we move up.

This is the daily chart......

....if you're struggling to read it click on it and it will expand. Alternately click on this link for the full-blown version....
dl.dropboxusercontent.com/u/7238706/FTSE...daily21June14%29.png

The move up from 6491 on March 10 2014 is looking like a five way impulsive move - so far at any rate. Wave marked in light blue as (( b / ii ))is more than 50% of wave (( a / i )); wave ( iii ) is more than 161.8% of waves i thru ii; and wave ( iv ) is 38% of wave ( iii ). A model impulse doesn't get much better than that but - to confirm the impulse we need to see divergence on the RSI during wave ( v ). If this doesn't happen this is an ABC formation with ( iii ) being the end of wave A, and ( iv ) being the end of wave B. WE would then now be into wave C.

Ok, that's the 'boring bit' over

Why does it matter anyway Well, if you want to know where the price is going next, it matters. If it's an ABC then we can expect wave C - the one we may now be in, to extend thru 100 > 127.2% of wave A from the end of wave B. So, from 6734, (the numbers in dark blue) we should go to somewhere between 7128 > 7236. If it's an impulse 5 way move then we can expect wave ( v ) to be one of three choices: either equal to wave ( i ) which was 216 pips and would mean a finish at 6951; 161.8% of wave ( iv ) which is shown on the chart in black and would mean a move to 6997; or it could also be 61.8% of the move from the start of wave ( i ) thru wave ( iii ), this gives us wave ( v ) finishing at 6978.

So, first we look to see if there is divergence on the RSI to give us a clue. Also check the price action around the resistance area around 6878.

Trade safely people and use stops. Have a relaxing weekend

dl.dropboxusercontent.com/u/7238706/FTSE...20Cash%20%28-%29.png

This is now looking very bullish indeed and is the third time we have been pressuring this level in the last month. If it now breaks through we should be challenging the 7,000 mark in fairly short order
(Please ignore any labeling on this chart: it is not intended for public consumption and is probably utter fiction )

Thanks Remo, 6900 very interesting point.

This looks like its getting ready to breakout to new highs soon..
Nice Ascending Triangle formation on this one.
Major resistance at 6875 but id want a finish above 6900 to signal new highs attempt.
one to watch for bullish summer signal


dl.dropboxusercontent.com/u/4899609/ftse1002ndjune2014.png

Cleared 6830
Next Resistance is 6885 and 6930



Dow seems to be breaking out as well