Friday, November 4, 2016

FTSE 100 Rule of 4 in play here?

FTSE 100 - Monthly

FTSE 100 - Weekly 

FTSE 100 Rule of 4 in play here?

The UK FTSE 100 has tested resistance at 6,951 four time without being able to clear this resistance, which indicates that the "Rule of 4" is in play here.

The "Rule of 4" states that, when a price breaks or fails to break a resistance or support levels on the fourth attempt, the outcome will be significant, and a big move should be expected. 

The FTSE 100 has failed to break above 6,951 on its fourth attempt, which could be a warning that a big decline is in the making. This is also supported by my Elliott Wave Count, which indicate that wave [C] to below 3,728 ultimately should be seen.

Short-term a break below minor support at 6,646 will be the first strong indication that the rule of 4 is in work here, while a break below support at 6,433 will confirm the failure and the expected big decline in wave [C] to below 3,728.

That said, I have to be fair and say. that a clear break above 6,951 will be equal important and call for much more upside in years to come.

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