Technicals | Jun 16 2014
By Nick Linton-Ffrost
The question for us is whether or not the seven weeks sideways pattern has built a base for another leg higher to 5650 or is it part of a deeper correction towards 5150?
The odds for the bullish case will firm up if the ASX 200 ( XJO) bounces out of the support level around 5350 and pushes back above 5420-5450. The bounce needs to occur within the next few days and would indicate a corrective pattern between 5570 and 5350 has most likely completed implying a move to 5650.
On the other hand if we see the XJO trading closing below 5350 for more than 2-3 days the odds will turn in favour drop to 5150.
Another trading idea from
Fifth Wave | fwtc.com.au
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