Technicals | Apr 20 2015
By Nick Linton-Ffrost
Break below 5900 implies a move to 5650. Trading above 5950 turns odds in favour of 6225.
Our suspected bullish triangle may have morphed into a triple top given the move below 5900. If the topping pattern takes hold the implication is for a drop to 5650 over the next 2-3 weeks and is contingent upon the ASX200 (XJO) remaining below 5900.
In wave count terms if a top does form at 6000 we will be assuming that the rally from 5100 to 6000 has completed five waves and imply a downside at 5500 (the January break point).
On the flip side trading above 5900 for 2-3 days will turn the odds back in favour of a test of the 6000 level. A break above that level implies a move to 6225/50.
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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