Technicals | Oct 13 2014
By Nick Linton-Ffrost
Emerging Sell
We expect ANZ will trade between 30.50 to 32.00 over the next week or two before heading lower towards 28.50.
Our view is based on a combination of the trend line break target and our wave count assumptions. The break of the two year uptrend line implies a target around the 28.00 level while our wave count assumptions indicate ANZ has or is near to completing a 3rd wave lower from 34.00 which improves the odds for some sideways trading between 30.50 and 32.00 before a 5th leg lower to 28.50.
We suggest waiting for sell signals over the next week or two otherwise open shorts using a 32.10 limit. Trading above 32.50 for more than a few days negates our view.
Trading tactics
Wait for a sell signals over the next week.
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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