Technicals | Mar 09 2015
By Nick Linton-Ffrost
Downside targets between 5700 and 5450
We suspect the ASX200 (XJO) has formed a top and we are expecting a pullback to 5700 over the next 3-7 days which should be followed and then a move lower to 5500 over the next month.
Our view is based on the assumption that the target derived from the break at 5450 has been achieved from the move out of the six month triangular pattern. We also suspect that the completion of the fifth wave within the move up from 5100 indicates that move has finished and improves the odds for a pullback to the bottom of the 4th wave around 5700.
We also expect to see a deeper correction back to the January break out point near 5450. Over the next six months we would not be surprised to see a move back to the bottom of the triangle pattern at 5100.
Â
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.
 AFSL 319830 | Disclaimer
Reprinted with permission of the publisher. Content included in this article is not by association the view of FNArena (see our disclaimer).
Technical limitations
If you are reading this story through a third party distribution channel and you cannot see charts included, we apologise, but technical limitations are to blame.
Find out why FNArena subscribers like the service so much: “Your Feedback (Thank You)” – Warning this story contains unashamedly positive feedback on the service provided.
