FTSE stopped at what can be described as the perfect neckline level for a potential H&S formation as we are now in the process to build the right shoulder which should rather last a few weeks and we will swing back and forth in volatile swings between 5000 and 5500 for the bigger trading band but right now the upside might be limited to 5350 for this week. Even if this were just an ABC correction we would have entered wave B up now and wave C would be a matter of 2-3 weeks before we test the lows again likely making new ones. Well in any case after a 15% leg down we can expect most likely to make a 61.8% retracement bringing the FTSE back to 5500 area in any case as the ideal level to go short again.
Monday, May 10, 2010
FTSE update - another Head & Shoulder
FTSE stopped at what can be described as the perfect neckline level for a potential H&S formation as we are now in the process to build the right shoulder which should rather last a few weeks and we will swing back and forth in volatile swings between 5000 and 5500 for the bigger trading band but right now the upside might be limited to 5350 for this week. Even if this were just an ABC correction we would have entered wave B up now and wave C would be a matter of 2-3 weeks before we test the lows again likely making new ones. Well in any case after a 15% leg down we can expect most likely to make a 61.8% retracement bringing the FTSE back to 5500 area in any case as the ideal level to go short again.
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