Good morning
The FTSE trading closed over 6000 yesterday and closed at the high of the day. A positive move and doesn't give us a short signal just yet but I believe we are very close to a top.
If we look at the bullish scenario then the price channel is capped at 6200 (see attached) and we also have resistance at 6080. If we turn to Elliott Wave Theory then we already have five waves up pointing to a move down. Elliott wave theory does state that wave 1 can be the same length of wave 5. Wave 1 started in July 2010 from 4788 and completed at 5429. That's 641 points. Wave 5 started at 5518 on the 1st Dec 2010. Add 641 onto this figure and you get 6159. Add to the equation over bought conditions and we can see we are near a critical turning point and we could turn down immediately or at least very soon. I am not calling a complete top on this market but a move to at least 5800 is due. After that I will access whether we have one more move higher before a long term decline starts.
When I met Mark I was enormously impressed with his FTSE trading abilities, so much so that I decided to recommend him to my clients. John Piper
Secrets of day Trading Methods
Get immediate access to the 'Secrets of Marks Day Trading Methods' today!
Market Trading Can Be Challenging -
Find Out How Mark Can Assist You.
The secret techniques of professional traders! Key strategies, Winning Mind set and Much Much more!
You'll also start receiving my daily Market Review
e-letter for free as well. All you need to do to is pop your name and email address into the box below.
0 comments:
Post a Comment