Technicals | Oct 04 2016
By Nick Linton-Ffrost
Top expected to form below 5600
Our view is based on the assumption that after forming five waves from 4700 to 5600 the ASX200 will trace out a three legged sideways correction.
Given we are marking the descent from 5600 to 5150 as the wave ‘A’ we are expecting the current rally (wave ‘B’) to complete its move below 5600 over the next 5-10 days.
If a top does form below 5600 we will be looking for another leg south towards 5050/5100 over a period of 5-7 weeks. Trading above 5600 for more than 3 days negates our view.
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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