Technicals | Sep 05 2016
By Nick Linton-Ffrost
Bounce to 5435/50 expected before heading south towards 5300
We are assuming that last week's sell-off in the ASX200 (XJO) completed the third wave within a move down from 5600. The implication is for a fourth wave bounce to 5425/50 before heading towards 5300. This view is contingent on the XJO remaining below 5455/75 (bottom of wave ‘i’).
Our 5300 target/support level is derived from July break point (green arrow), the bottom end of the 7 month uptrend channel and where wave ‘v’ would approximate wave ‘i’. If the market fails to find a foot hold around 5300 we will be looking for a dip to 5050 (bottom of the wave ‘4’).
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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