FTSE 100 (UK) Elliott Wave Analysis – Trading Lounge Day Chart
FTSE 100 (UK) Elliott Wave Technical Analysis
Analysis Overview
Function: Bullish Trend
Mode: Impulsive
Structure: Orange Wave 5
Position: Navy Blue Wave 3
Direction (Next Lower Degree): Navy Blue Wave 4
Invalidation Level: 7,997.82
The FTSE 100 index exhibits a bullish trend, as analyzed using Elliott Wave Theory on the daily chart. The market is currently in an impulsive phase within orange wave 5, following the completion of orange wave 4, signaling continued upward movement.
Presently, the index is progressing through navy blue wave 3, which forms a crucial part of the overall orange wave 5 structure. This momentum-driven phase indicates further potential for upside growth. Upon completion of navy blue wave 3, a corrective phase in the form of navy blue wave 4 is expected before the upward trend resumes.
The invalidation level is established at 7,997.82, serving as a key threshold. A breach below this level would invalidate the current bullish wave count, prompting a reassessment of the technical outlook.
Summary
The daily chart analysis of the FTSE 100 index underscores a strong bullish trend, driven by the ongoing development of orange wave 5 and the previous completion of orange wave 4. The formation of navy blue wave 3 supports further price growth under the Elliott Wave framework. A corrective phase in the form of navy blue wave 4 is expected before the next bullish leg resumes.
The set invalidation level acts as a crucial risk management parameter, helping traders maintain alignment with the projected wave count. This technical analysis provides valuable insights for traders looking to navigate the bullish market environment and manage risk effectively.
FTSE 100 (UK) Elliott Wave Analysis – Trading Lounge Weekly Chart
FTSE 100 (UK) Elliott Wave Technical Analysis
Analysis Overview
Function: Bullish Trend
Mode: Impulsive
Structure: Orange Wave 5
Position: Navy Blue Wave 3
Direction (Next Lower Degree): Navy Blue Wave 4
Invalidation Level: 7,997.82
The FTSE 100 index, analyzed through Elliott Wave Theory on the weekly chart, highlights an ongoing bullish trend with an impulsive wave structure. The index is currently advancing within orange wave 5, which follows the completion of orange wave 4, signaling a continuation of the market’s upward trajectory.
At present, the market is positioned in navy blue wave 3, a sub-wave within the broader orange wave 5 pattern. This phase suggests ongoing bullish momentum with the potential for further price increases. Following the completion of navy blue wave 3, the formation of navy blue wave 4 is anticipated, bringing a short-term corrective movement before the broader trend continues higher.
The invalidation level, set at 7,997.82, acts as a critical reference point. A drop below this level would necessitate a revision of the wave count and future market projections.
Summary
The weekly analysis of the FTSE 100 index presents a positive outlook, reinforced by the progress of orange wave 5 and the conclusion of orange wave 4, which validates the bullish trend. The ongoing formation of navy blue wave 3 supports the potential for further upward momentum, with an expected corrective phase through navy blue wave 4 before resuming growth.
The identified invalidation level serves as an essential risk management element, ensuring alignment with the projected wave structure. This analysis helps traders stay informed of key levels, optimize their trading strategies, and adapt to potential market changes effectively.
Technical Analyst: Malik Awais
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