The FTSE a year on from the Covid crash

TL;DR

The FTSE, Tesla, and Bitcoin are all facing bearish trends according to Elliot Wave Analysis, with potential downside targets identified for each.

Transcript

hello it's john burford with chart of the week for monday the 1st of march it's march already hardly believable and it's a year since the corona crash do you remember that it was quite an event wasn't it and this is the ftse i'm covering it today because it's an opportune time to do so i believe uh this is the weekly chart and of course this is the... Read More

Key Insights

• 🎚️ The FTSE is still in a bearish trend unless it surpasses the 7000 level.
• 🎯 Tesla's rally pattern suggests a potential correction with a downside target around the 300 level.
• 👋 Bitcoin's wave pattern aligns with Tesla's, indicating a possibility of a corrective phase.
• 🧑‍🏭 Elliot Wave Analysis focuses on market sentiment rather than fundamental factors.
• 😥 The Fibonacci 50 support level is a significant point for potential reversals or bounces.
• 🌥️ The patterns observed in FTSE, Tesla, and Bitcoin indicate the larger influence of investor sentiment on these markets.
• 👋 Bearish outlooks are based on technical analysis and historical wave patterns.

Questions & Answers

Q: What is the Elliot Wave Analysis, and how does it apply to the markets?

Elliot Wave Analysis is a technical analysis tool that identifies patterns in market price movements. According to this theory, markets move in repetitive wave patterns based on collective investor sentiment, disregarding fundamental factors.

Q: What is the significance of the FTSE surpassing the 7000 level?

If the FTSE manages to break above the 7000 level, it would call for a reassessment of the bearish outlook. It could indicate a shift in sentiment and potentially lead to a more bullish trend.

Q: What is the downside target for Tesla's corrective phase?

Based on the Elliot Wave Analysis, the downside target for Tesla's correction is around the 300 level, which coincides with the previous wave four low.

Q: Why is the Fibonacci 50 support level significant for Bitcoin?

The Fibonacci 50 support level aligns with the fifth wave of Bitcoin's rally. It acts as a crucial support point, where counter-trend rallies can occur before potentially continuing the downward correction.

Summary & Key Takeaways

• The FTSE experienced a significant crash due to the pandemic last year and has since formed a three-wave rally, indicating a corrective pattern. The overall trend remains bearish unless the market surpasses the 7000 level.

• Tesla's strong rally has followed a typical wave pattern of a bull market, but it appears to have reached a fifth wave high and is now expected to enter a corrective phase, potentially dropping to around the 300 level.

• Bitcoin also exhibits a similar wave pattern to Tesla, signaling a potential correction. The Fibonacci 50 support level aligns with the fifth wave, suggesting a significant resistance point.