Technicals | Jan 30 2014
By Nick Linton-Ffrost
Rationale
The XJO appears to be squeezed between the 4 month down trend line and the 18 month uptrend. So is this a continuation or a topping pattern?
Our wave count assumptions indicate the following pivot levels may provide some clues. Trading above 5250 for a couple of days indicates that the third leg of the current correction (wave C) terminated at 5110. The implication is for a move towards 5500.
While a couple of days trading below 5150 improves the odds for an extension of the third leg lower to around 4900. In this case the up trend line from June 2012 would be taken out and may trigger technical selling.
ASX 200
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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