Technicals | May 11 2015
By Nick Linton-Ffrost
Watch the 5750 level over the next week
Bullish case – After breaking below 5750 the ASX200 (XJO) has achieved our minimum break target near 5550. The move down from 6000 has traced out three waves where the length of wave “C” approximates the length of wave “A”. If the market holds above last weeks low and trades for 2-3 days above 5700 the odds will turn in favour of a move back into the 5750 – 6000 range.
Bearish case – where the XJO pulls back to the break level around 5750-5800 (i.e where previous support becomes resistance) and then rolls over towards the maximum break target at 5500. In this case the XJO should not trade above 5800 for more than 2-3 days.
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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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