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

I maintain the long-term scenario, which I posted on June 28, therefore on July price should have  established the bottom of the wave (A) of the discussed Double ZZ from the 2007 Top.

My plan put forward suggests that price from the July lows is going to unfold a Zig Zag or a Double Zig Zag up with a potential target in the range of the 200 w MA = 9500

What I don´t know at the moment if the next up leg off the July lows will complete the second wave (B) of the DZZ off the 2007 top.

Regarding the short term time frame scenario:

Price with an Expanded Ending Diagonal has completed a Zig Zag from the July lows. The Double Top + the break down of the trend line support gives enough confidence that we have a trend reversal. The DT has a target at 7776. This top can be labeled as a wave (A) of a pending larger Zig Zag up or a wave (W) belonging to a larger Double Zig Zag. Regarding the potential target of the current pull back, I initially establish a wide range ==> 7574 – 7084.5 since we are in the initial stage of the correction and the big question is if the 200 d MA = 7574 will be able to prevent a move towards the 0.382 retracement = 7356. Therefore we have to wait to see which EWP the correction unfolds.

Momentum indicators should give us clues regarding the price intentions:

The 50 line of the RSI has to be breached if price is involved in a multi week pull back.

Stochastic has a lot of room to the down side before entering the oversold zone