View: IBEX: Follow up of the short term EWP | The wave trading

We have a “thrilling” EWP

As I mentioned in my last update on September 13, the internals structure of the move from the July 25 nominal low, of a truncated wave (C), has a clear deficiency of not being impulsive.

If it is corrective then a price sequence of 7 -wave can complete either a  (ABC) = Zig Zag or (ABCXABC) = Double Zig Zag.

There is a technical issue since if the terminal pattern is an ending diagonal it does not obey to the rules since its wave (iii) is the shortest. But if price closes Friday´s gap at 7935.90 then the odds of a top will substantially increase.

If a top is in place don´t ask me for a target.  Who knows if the 200 d MA = 7583 will hold which would result in a shallow pullback or if  a more reasonable pullback will bring into play the 0.382 retracement.

Regarding the longer time frame scenario, if we have a top, as long as price does not lose the 50 d MA, I am in the camp of labeling this up leg as the wave (A) of a larger Zig Zag up.