The preferred Elliott Wave view suggests wave ((X)) pullback took the form of a double three (W)-(X)-(Y) structure. Wave (W) ended at 19665. Wave (X) took the form of a FLAT (3-3-5 structure) and completed at 19820. In our last Chart of the Day update, we said wave Y of ((X)) can still make one more low and test 18805 – 19045 before buyers appear and 3 waves reaction higher takes place per Elliott Wave hedging idea.
The current update proposes wave (Y) of ((X)) has completed at 19055, and the Index has bounced as anticipated. The index is expected to bounce at least 3 waves higher with an ideal target of 19675 – 19821 (50 – 61.8 back from wave ((Y)) high). Readers who took a long position should have a risk free trade already.
If you would like to have an access of EWF analysis in real time, click here and feel free to join us. We provide Elliott Wave charts in 4 different time frames, 2 live webinars by our expert analysts every day, 24 hour chat room support, market overview, daily and weekly technical videos and much more.