Technicals | Aug 18 2014
By Nick Linton-Ffrost
We suspect last week's rally in the ASX200 from 5400 to 5580 was a corrective ‘B’ wave rally within a “zig-zag” move towards 5400 over the next 5-7 days.
Timing-wise the market should turn lower over the next day or two. For the trade to work the market should not trade above Friday’s reversal day high around 5580 for more than a day.
Therefore we we suggest waiting for a lower high to form around 5550 or a close below Friday's high before opening shorts placing stops above 5590.
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.
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