FTSE 100

Briefly

Published 25th June 2018 & validated 13th August 2018

The FTSE 100 is most likely within a final swing into a cyclical top. The main question is whether the swing finished in May 2018 or extends further to the upside. We expect the subsequent correction to last multiple months to a couple of years.

Short-Term FTSE 100 Elliott Wave Analysis

Published 13th August 2018

Showtime approaching for Europe! Major indices have been selling off all across Europe. Britain was no exception. Price action took the FTSE index near the bottom of a complex correction, which lasted for the past few weeks. The entire corrective structure could be complete within the next few trading days (depicted in black). If our analysis is correct, we are a few days away before a rally starts, which extends the entire cycle a bit further to the upside.

The respective mid-term trend channels for the DAX & CAC 40 are likely to guide us whether we are correct with our analysis or not. A clear break of these trends should occur soon if the entire cycle ended already. We are still favoring the black scenario slightly over the red. We expect to see another extension to the upside for British equities.

 

Medium-Term FTSE 100 Elliott Wave Analysis

Published 15th February 2018 & amended 19th July 2018 (last paragraph)

The FTSE 100 has traced out a triangle structure, which ended in 2011. It looks similar to many other indices in continental Europe. We see the index take off to new highs despite short-term pullbacks. The light blue trend channel in the chart below is the beginning of cycle wave v. This wave is a secular bull market and will carry the FTSE higher for a major part of the coming decade.

Near-term we expect a retracement of intermediate wave (1) to carry at least into the 6,600-6,800 area. We see this pullback as a great “buy the dip” opportunity to invest in the UK stock market. This retracement could begin in 2018. We have published a broad overview of European equity indices on SeekingAlpha. It gives our big picture of what we expect for the major European indices during the next years.

Technical Analysis