Where is the start of a healthy bullish movement to be expected? Let’s see at what point of the climb the prices are and what are the most significant levels for an entry (upward and downward).
By Fabio Pioli, professional trader and founder of CFI Independent Financial Advisory (www.cfionline.it).
Where will the movement traced in Figure 1 end?
Fig 1. FTSEMib Future – Weekly chart
Elliott it only tells us that, if it is now established that its composition was not the one presented in Figure 2 …
Fig 2. FTSEMib Future – Daily chart
… it could alternatively be that of Figure 3 …
Fig 3. FTSEMib Future – Daily chart
… or that of Figure 4.
Fig 4. FTSEMib Future – Daily chart
So, commenting, we may be near or not near the end of the movement. However, what is important to know is that, regardless of this, it is not fair to buy (but of course, we always add, everyone does what they want) because you would buy in an area where the upside arrives rather than the start of the upside.
Where, then, is it right to wait for prices to make the decision to buy (or not to buy)? On the supports of course. It is from there that a new and healthy bullish movement would start (or would not start if vice versa were broken). And such supports are now at 23,800 points. But first it would go from 24,900 points. It is there that we await the prices at the gate to carry out a new possible bearish intervention.