Technicals | Feb 16 2015
By Nick Linton-Ffrost
Target range between 5950 and 6100 before pullback
We suspect the ASX200 (XJO) is trading within the fifth wave of a rally from 5100 which should terminate between 5950 and 6100 over the next 5-10 days before pulling back towards 5700.
Our view is based on the assumption that our break and wave count target levels will provide strong resistance and create reversal levels.
The 5950 triangle target is dreived from the break out of the four month pattern at 5500 while the near term wave count target at 6100 is where the fifth wave approximates the length of wave one.
We do not recommend shorting the market until a lower high forms between 5950 and 6100, however reducing long positions is suggested.
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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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