FTSE Resistance Remain Intact At 6500/6600

06 July 2020

FTSE price action revolves around 6250 levels as we prepare to publish this article. Bears should be inclined to take back control from here and turn lower towards 4750 levels, going further. The indice is expected to ideally remain below 6500/6600 resistance.

Let us have a look at probable wave counts presented on the hourly chart here. The drop from 6500/10 through 5920/30 can be clearly sub divided onto 5 waves (impulse), labelled as Wave 1 of a lower degree. Ideally, an impulse drop should be followed by a corrective rally.

FTSE had rallied from 5920/30 through 6350/60 in 3 waves, labelled as potential a-b-c, hence corrective. Also note that the counter trend rally had reached close to fibonacci 0.786 retracement of the earlier drop, around 6387 as spread on the chart here. This could be potential Wave 2.

Alternately, Wave 2 could terminate around 6360/70 mark before resuming lower again. Either way, FTSE is expected to resume Wave 3 lower either from current price action or from 6360/70 mark, higher up.

The above potential wave count represents the most common pattern of Elliott Wave Principle. 5 waves Down, followed by 3 waves Up. If the above counts hold well, FTSE could be well on its way lower, as Wave 3 progresses. The indice will accelerate its drop as 5930 breaks.

Overall, traders might be well inclined to initiate fresh short positions around 6250/6300 and keep protective stops above 6800/6900 (shall be revised later). The projected targets point below 4750 levels going forward.

Prepared by
Technical Analysis Team

Disclaimer: This information has been produced by a third party, for general information purposes only, and is not indicative of future results. Abans Global takes no responsibility for its accuracy or completeness. Any opinions expressed do not reflect those of Abans Global. This information does not take into account your personal circumstances or objectives, and should therefore not be interpreted as financial, investment or other advice, or relied upon as such. You should seek independent advice before making investment decisions. Reproduction of this information, in whole or in part, is not permitted. Please note: If you are a Professional client, you are not eligible for negative balance protection and you could lose more than your initial deposit.

Trade with
Abans Global

  • Authorised and Regulated by FCA
  • Customer Support 24/5
  • Low Spread & Commission
  • Instant Execution
  • No Dealing Desk
Interested in knowing more about our products

Simply send an e-mail to us at: support@abansglobal.co.uk
Contact us on +44(0) 203 936 9000

We will be happy to address all your queries

Our Products

Offering state of the art execution services through multiple top-tier liquidity providers. Abans Global provides you with a tailor-made solution to match the demanding requirements of your business, with the multi-assets offering, advanced trading platforms and FIX API connectivity that provides ultra-low latency.

Forex

Forex

Know More

View more
Cfd’s

Cfd’s

Know More

View more
Equities

Equities

Know More

View more
Indices

Indices

Know More

View more
Commodities

Commodities

Know More

View more

Create Demo Account

Try Demo

Create Live Account

Sign In