Technicals | Mar 29 2016
By Nick Linton-Ffrost
Our 5400 target remains in play while support around 5050 holds
We suspect the ASX200 will trade between 5050 and 5225 over the next 3-5 days before heading towards 5400. From there we will be looking for a 2-3 week pull back to 5100 before another leg higher towards 5700-5800 over a period of two months.
Our view is based on the following assumptions –
- completion of five major waves down from 6000 implies a bounce to the top of wave (4) around 5400
- the rally from 4700 to 5225 has traced out three minor waves within a suspected five wave rally to 5400 to complete (A)
- once five waves are complete within (A) we will be looking for pull back towards 5100 to complete (B)
- from there (C) carries to 5700-5800 which is the 12 month trend line break target range (i.e height of the channel added to 5225 break point).
Our view will negated after 2-3 days trading below 5000. Such a move would imply a dip to 4800.
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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