During Monday’s trading session, the FTSE 100 started the week easing 0.22%. Despite this drop, this year the leading British index advances 12.12%. In this post, we will see what to expect from the FTSE 100 in the short term.
The Big Picture
The British index FTSE 100 is being traded bullish since the last week of December 2018. As you may recall, in our article “How to use channels to identify waves”, we saw how to define potential target areas. In the daily chart, we observe the four waves movements completed. Also, we see the development of a fifth wave, which could lead to record highs. While the British index is holding above the 7,081.2 pts, the bias remains bullish.
Short-term, in the FTSE 100 index price action, we detect an incomplete bullish sequence. Currently, is retracing the bullish cycle started in January 2019, and we foresee this retracement to end around the psychological area of 7,400 pts. After this correction, it should continue its upward path with an initial target between 7,862 pts and 7,997.7 pts. We do not discard out an extension that could exceed the 8,000 pts. The invalidation level for the short-term scenario is located at 7,318.3 pts.
Remember that the price is not forced to move as our outlook proposes. The chart released corresponds to an Elliott Wave Analysis application.