Downside Pressure For Telstra

This story features TELSTRA GROUP LIMITED. For more info SHARE ANALYSIS: TLS

The company is included in ASX20, ASX50, ASX100, ASX200, ASX300 and ALL-ORDS

By Nick Linton-Ffrost

We suspect the next 3-5 days trading and the price action around 5.10 and 4.95 will determine Telstra ((TLS)) direction for the next 2-3 weeks.

Trading below 4.95-5.00 for a few days brings the bearish wedge pattern into play which would improve the odds for a move towards 4.70.

Whereas a few days trading back above 5.05-5.10 would imply a return to the two month trading range between 5.00 and 5.30. Before trading from the long side we require a high low to from above 5.00.

Trading tactics

Open shorts after a few days trading below 5.05 placing stops above 5.15 and looking for a move to 4.70.

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 27years experience.

 AFSL 319830 | Disclaimer

Reprinted with permission of the publisher. Content included in this article is not by association the view of FNArena (see our disclaimer).

Technical limitations

If you are reading this story through a third party distribution channel and you cannot see charts included, we apologise, but technical limitations are to blame.

Find out why FNArena subscribers like the service so much: "Your Feedback (Thank You)" – Warning this story contains unashamedly positive feedback on the service provided.

Click to view our Glossary of Financial Terms