Technicals | Jun 01 2015
By Nick Linton-Ffrost
Index Remains Poised
Upside (top chart) – trading above 5750 over the next 2 days implies a move to 5900 then 6000. The assumption is that the correction lower from 6000 to 5575 is now complete given the three wave count (abc). A buy signal will be triggered if the ASX200 (XJO) trades for more than 2 days above the top of “wave 1? at 5750 and imply a five wave move to 6000.
Downside (bottom chart) – assumes that the move lower from 6000 to 5575 (wave A) has counted out five waves which indicates the downside move is taking hold. The implication is that after trading sideways between 5575 and 5800 the market will take another leg lower (C wave) to 5350. In this case the sell trigger occurs if the market remains under 5800 and then trades below 5725 for more than 2 days.
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Another trading idea from
Fifth Wave | fwtc.com.au
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