Recently pullback to 1380 would probably remain the top for some weeks.

According to my bearish Elliott Wave counting (see chart) that top at 1380 has probably signed the end of wave (4) and we are now inside the final wave (5) of a major descending third wave, labeled with “III”. The channel inside which the index is moving is showed in blue line. Channel in dotted line is my “second chance” channel, and it will be used in case of the index turn up and goes above 1380.

Now, the first target down is 1120: here wave (5) is equal to wave (1), and it is a level very near to 1150, where wave “III” is equal to 1,618 times wave “I”.
Major setup date is at 17th of November: in that date, more or less one trading session, the index could probably touch its target at 1120 and then begin its new corrective rise, wave “IV”.

Eventually, above 1380 I would slightly change my Elliott Wave counting.

H.F.L.

Last 5 posts by Graziano Nanetti

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