Technicals | Nov 30 2015
By Nick Linton-Ffrost
Trigger levels at 5100 and 5300
Upside – trading above 5300 in the ASX200 (XJO) creates a higher low and should trigger another leg higher within the recent bounce from 4900. Such a move may set up a trend line break with an indicated target around 5900 (i.e height of trend channel added to break point). View contingent on market holding above 5100.
Trading above 5400 creates a medium term higher low at 4950 (bottom of wave 2) and and at the same time breaks above the three month sideways pattern. The implied target is 5900 derived from height pattern added to break point.
Downside – while 5400 resistance remains intact working with a bearish five wave count lower from 6000 is feasible. The implication is that the last three months trading range is a 4th wave structure which implies a 5th lower to 4400-4500.
Trading below 4900 should trigger such a move (i.e. height of pattern less break point), however if the XJO trades below 5100 for 1-2 days that would be an early warning signal of the move south.
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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