Technicals | Oct 10 2016
By Nick Linton-Ffrost
Medium term high expected to form below 5600 over the next week
Our view remains unchanged from last week and is based on the assumption that after forming five waves from 4700 to 5600 the ASX200 (XJO) 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 week.
If a top does form below 5600 we will be looking for another leg south towards 5100 over a period of 5-7 weeks.
Trading above 5600 for more than 2 days negates our view and if the XJO holds above 5450/5500 for over 5 days we will raise our downside target to 5250.
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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