Downside Risk For ASX 200

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By Nick Linton-Ffrost

We are working on the assumption that the ASX 200 (XJO) has failed to run after breaking out of the six month trading range which improves the odds for a pull back to 5250 and potentially 5100.

Our conviction on this call will firm up once a lower high forms below 5550 or after 3-5 days trading below  5500.

If the plan comes together we expect the move to 5350 should take 2-3 weeks, while a move above 5550 negates our view and should trigger a move to 5700.

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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