Technicals | Jun 22 2015
By Nick Linton-Ffrost
Keep an eye on the 5580-5620 pivot level over the next few days
The ASX200’s (XJO) reaction the 5580-5600Â pivot level over the next 2-5 days should determine the markets direction for the next few weeks.
If the market holds above 5580-5620 for over 2-3 days the odds will turn in favour of a corrective rally to 5900. In this case the 5/20 MA’s would cross into a buy and a line break trade would come into play. Upside break target derived from height of channel added to break point.
If however the market remains below 5620 and pushes back under 5525 within the next few days then we will be expecting the market to track lower in a fifth wave structure. That is we will be assuming the 4th wave has terminated at 5620. Under this scenario our near term target is around 5300 and our medium term target would be 5100.
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Another trading idea from
Fifth Wave | fwtc.com.au                                             Â
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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