Good morning
This morning I have attached a graph showing key support for the FTSE at 5720. This area is where the MA 50 and MA 10 lie and as long as we don't close (end of day basis) below this level the FTSE remains bullish. We can see on the graph the MA 50 provided important resistance for the recent correction and during the rally from September the MA 50 provided very strong support on the downside so we must pay attention to these areas.
The Elliott wave count still suggests a move to 5750 (and below) before we head higher. A close above 5870 would compromise this count. With very slow price action within a triangular pattern the FTSE is gearing up for a move. The odds are stacked to the downside at this stage. However, given that we are in a strong uptrend it is best we wait to position long after a correction but we can use morning signal alerts to run short positions.
Hi
ReplyDeleteI have tried to analyze the charts from various timeframes and I just cannot see via Elliot Wave strong enough to retrace to 5750 - we are currently in middle of wave 5 forming and target of 6100ish by middle/end of Jan 2011 before we see a correction. We have good support at moment around 5820ish (igindex chart)
At that point we have a start of next wave up in latter half of 2011 - unless we get a trend reversal after wave 5 correction.
Just my opinion :)