Emerging Sell In 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

Trading tactics

Wait for a lower high to form below 5.30 before opening looking to open shorts.

Rationale

We suspect Telstra ((TLS)) is trading within a five wave wedge pattern which may provide us with a short trade. A confirmed break below 5.05 indicates targets between 4.80 and 4.60.

This is clearly a counter trend trade and requires the right triggers. We will be watching for a bounce and a higher low or more work around the 5.05 level before getting overly excited. We do not suggest pre-empting the line break.

If the trade does come together it would take around 30 days to achieve break and wave count targets between 4.80 and 4.60. The trick with this one may be getting enough edge.

 

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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