From the FTSE 100 short term forecast dated 21st September
At the time I wrote:
"I expect the BTI (sentiment indicator) to turn up to confirm the rally but so far this indicator is still declining. It is now clear that the FTSE is tracing out an impulse wave up which means the trend is up.
The sequence [(i),(ii),(iii),(iv),(v)] above the 55-period moving average is an impulse wave. On the 15-min chart there are five waves inside wave (iii). Yesterday’s pullback into the close is wave (iv). Today’s rally in pre-open is the start of wave (v). I expect wave (v) to end near 6900.
This sequence [(i),(ii),(iii),(iv),(v)] is wave i (circle) of a larger five-wave rally. Therefore from an area near 6900 I expect a pullback to 6750 for wave ii (circle). This level is just below the 55-period moving average which is now support because the trend is up. The rally should resume after the pullback, it will be wave iii (circle) and the target is 7000"
Of course what appears to be a specific pattern may turn out to be a different pattern. Today the pattern is different but the FTSE 100 is still on course to hit 6750. There is also an alternate scenario where the FTSE 100 could hit 6700.
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