Technicals | May 09 2016
By Nick Linton-Ffrost
Upside more favoured while 5150-75 support holds
Upside view – if the ASX200 holds above 5150/75 and trades above 5350/5400 for more than 5 days we will be expecting a move towards 5700 and potentially 6000.
- 5700 = height of 12 month down trend channel added to break point around 5150 ( green markings)
- 6000 = height of the eight month trading range between 4700 and 5400 added to the 5400 break point (orange markings)
Sideways view – if the market remains below 5350/5425 and trades under 5150/5175 for more than 3 days we will be looking for 2-3 weeks of sideways trading between 4800 and 5200. Under this scenario we will be tagging the recent rally from 4700 to 5400 as a near term three legged correction within the eight month structure.
Another trading idea from
Fifth Wave | fwtc.com.au
FW generates over 150 Trading Alerts on the ASX100 each year. We are a subscription service specialising in short term technical strategies based on 27 years experience.
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