Technicals | May 04 2015
By Nick Linton-Ffrost
Emerging break trade
Downside break – we expect the ASX200 (XJO) to break lower and trade towards 5500 over the next 3-4 weeks. Our view is contingent on a lower high forming under 6000 and needs to be followed by a break below 5750. If the market does unravel in this fashion our medium term target extends to 5100 (bottom of major 4th wave).
Upside view– trading above 6000 should yield a move to 6250. Before committing to that trade we suggest waiting for a higher low to form above 5750 followed by 3-4 days trading above 5950. The 6250 target is derived from the pattern height added to the break point. Timing to target would be 2-4 weeks.
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 27 years experience.
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