Date: June 2012: IBEX: Follow up of the short term EWP | The wave trading

Even if you don´t trade IBEX I suggest to follow it during the next 2 weeks since it will give us clues regarding the longevity of the Equity indices counter trend rebound which began at the June 6 lows.

Why 2 weeks ?

Because during the week of the 4th of July US holiday the equity market usually has a bullish bias therefore price could complete the corrective rebound the following week.

Following the long term scenario I have posted yesterday price should be involved in unfolding a counter trend rebound wave (B).

Judging for the internal structure of the move from the June 6 low, in my opinion, it is reasonable to expect a Double Zig Zag, hence price is now unfolding the wave (A) of the second Zig Zag.

The equality extension target for the wave (Y) is at 7484

In the next daily chart I have highlighted a potential target box for the wave (B) in the range 7305-7505.30

The next resistance zone is at 7184-7186

There is a caveat that warns some caution since today´s candlestick is already above the upper BB, hence, I think that it is reasonable to expect a pullback at the beginning of next week.

Have a great weekend