Technicals | Mar 02 2015
By Nick Linton-Ffrost
Expecting a pullback to 5700 after forming a top between 5950 and 6100
We continue to run with the assumption that the ASX200 (XJO) is trading within the fifth wave of a rally from 5100 which implies a near top top should form between 5950 and 6100. If a reversal does occur we will be looking for a pull back to at least 5700 and potentially 5500.
These levels are derived from the triangle break target at 5950 and the 6100 level is indicated where the 5th wave will approximate the length of wave one.
We do not recommend shorting the market until clear reversal signals occur such as a strong reversal day followed by the formation of a lower high below 6100 or a series of 3-5 days with lower lows and lower highs. We suggest reducing long positions between our target levels.
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Another trading idea from
Fifth Wave | fwtc.com.au                                             Â
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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