Bubble Trouble: Update on a Parabolic Rise

This parabolic curve generated a 20-fold increase

A “parabolic” rise on a stock chart refers to a sharp upward price move which resembles the right side of a parabolic curve.

In other words, the price of the stock has skyrocketed in a relatively short time.

When Elliott wave analysis suggests that this rise is over, watch out below.

Such was the case a few years ago with the stock price of the London Stock Exchange Group.

Our Sept. 2019 Global Market Perspective said:

The LSE group… has been riding along an upward parabolic curve that has generated a 20-fold increase in the stock price since the late 2000s. Parabolic advances are inherently unsustainable.

That, indeed, proved to be the case. After LSE advanced further, the price climb came to an end in early 2021.

Here’s what the LSE’s pattern looked like in late August 2019 and to the right of that is an update from our October 2023 Global Market Perspective. As this latest issue notes:


Prices broke from an all-time high of 10,010 on February 16, 2021, and two months later, the April 2021 [GMP] called for [an Elliott] wave to “partially retrace the decline.” The updated chart at right shows that [retracement], ending at an intraday high of 8,818 on June 9, 2023.

Our October Global Market Perspective goes on to mention what may be next for LSE group.

Relatedly, some are saying that London’s status in the financial world has slipped — at least somewhat (Bloomberg, March 2023):

City of London Stumbles In Its Own Ranking of Finance Centers

There are concerns that fewer companies are choosing to list in London.

And, stepping back and looking at the big picture in the U.K. and other major European economies, Elliott Wave International’s view is that far too few investors anticipate what may be just around the corner.

Get our analysis of 50-plus global financial markets now by following the link below.

Major Global Financial Markets Reach Pivotal Junctures

EWI’s analysts see historic shifts ahead for asset classes in the Asian-Pacific, Europe, the U.S. and other regions.

Yes, “historic” is a sweeping word — but once you read our forecasts for global stocks, bonds, metals, forex, cryptocurrencies, energy (and more), you’ll likely agree that the word is fitting.

Almost no one expects historic turns in major markets before they happen. Hence, EWI strongly suggests that you not look to the mainstream financial press for guidance.

Instead, get an independent perspective which EWI believes will serve you well in the immediate months ahead.

You can have our Global Market Perspective on your screen in moments as you follow the link below.