Technicals | Aug 08 2016
By Nick Linton-Ffrost
Why 6000 is technically significant
We suspect the market is trading in a minor 5th wave up from 4700 which implies a near term top is in place at 5600 therefore we will be looking for a pull back towards 5400 over the next 3-4 weeks. Our view is based on the assumption that 5600 is a target “achievement level” derived from the break at 5300 and where wave ‘5’ = ‘1’. In addition the top end of the up trend channel (red) make create some reasonable resistance.
Trading above 5600 for more than three days will negate this view and bring forward our medium count which assumes that the drop from 6000 to 4750 was a major (4) which implies a major (5) rally towards the 6000 line break target (i.e. height of 10 mth trend channel added to the 5150/5200 break point).
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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