Technicals | Sep 12 2016
By Nick Linton-Ffrost
Levels to watch
We suspect the ASX200 (XJO) will find temporary support between 5200 and 5250 after tracing out five waves lower from 5600 and hitting the bottom end of the 7 month uptrend channel.
If the market does find it feet we will be looking for 1-2 weeks trading between 5200 and 5450 to form wave (B) before another leg lower. Given we are assuming that the channel support will eventually crack we are penciling in the following downside targets –
- the bottom of wave 4 around 5050
- channel break target =4900 (i.e height of channel subtracted from line break point)
- where (C) = (A) at 4950
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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