Elliott Wave View: FTSE in wave 4 Pullback

Financial Times Stock Exchange (FTSE) has continued higher following other major indices world wide. Short term Elliott Wave view suggests the rally from September 20, 2021 low is unfolding as a 5 waves impulse Elliott Wave structure. Up from September 20 low, wave 1 ended at 7159.61 and pullback in wave 2 ended at 6945.04. Index then resumes higher in wave 3 towards 7243.85. Internal subdivsiion of wave 3 is unfolding as an impulse in lesser degree.

Up from wave 2, wave ((i)) ended at 7146.85 and pullback in wave ((ii)) ended at 7063.43. Index then extends higher in wave ((iii)) towards 7243.85. Index then pullback in wave ((iv)) which completes at 7180.20. Afterwards, it resumes the rally to 7281.17 to complete wave ((v)) and wave 3. Wave 4 pullback is currently in progress to correct cycle from October 6 low before the rally resumes. Potential support area for wave 4 comes at 7153 – 7202. This is 23.6 – 38.2% Fibonacci retracement of wave 3. Near term, as far as wave 2 pivot at 6945.04 low remains intact, expect wave 4 pullback to find support in 3, 7, or 11 swing for further upside.