Technicals | Feb 08 2016
By Nick Linton-Ffrost
ASX200 levels to watch over the next 3-5 days
Upside
- Assumes five count down from 6000 to 4750 where wave ‘5’ = timing and length of wave ‘1’ (top chart)
- implies a medium term low is in place 4750 based on 5th completion. Bounce targets at 5400 and 5700
- 5400 is top of 4th (i.e. 5th completion rule) and 5700 is the trend line break target (line not drawn on chart)
- trading above 5000 indicates a higher low at 4820 (wave 2) has formed and a move above 5000 triggers a buy
- contingent of XJO holding above 4800 and trading above 5000 within the next 2-3 days
Downside
- 6000 to 4750 is an ‘A’ wave in a larger downside move between 4750 and 5400 (bottom chart) where wave ‘B’ is the 4 mth range
- 4200 target is where A=C and the 4300 target is height of 4 mth pattern subtracted from 4570 break point
- trading between 4850 and 4925 for more than 3 days increases downside risk while trading below 4750 triggers a sell signal
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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