FTSE move up from 7192.35 low appears to be unfolding as an Elliott Wave impulse. Wave (iii) blue has already reached 1.618 Fibonacci extension of wave (i)-(ii) and has already got enough extension in wave (iii) but looking at internal structure of wave (iii) it appears to be in 3 waves and thus ideally we should get another high towards 7406 -7430 to complete wave (iii) before Index makes a 3 wave pull back in wave (iv). As wave (ii) was a simple pull back, so we can’t rule out the possibility of a FLAT or triangle in wave (iv). Wave (iv) would typically retrace to 23.6 -38.2 Fibonacci retracement area of wave (iii). As per Elliott Wave rules, wave (iv) should not overlap with wave (i) at 7285.19 but as per the new guidelines that we have introduced, wave (iv) must not get below 50% Fibonacci retracement of wave (iii) for the Elliott wave impulse idea to remain valid. Once wave (iv) pull back has completed, expect the Index to make another rally in wave (v) to complete a 5 wave move up from 7192.35 low and then it should pull back in 3 waves to correct the cycle from 7192.35 low at minimum or could correct a larger cycle.
FTSE 1 Hour chart 3.2.2017