article 3 months old

ASX200: Still Pointing Down

Technicals | Sep 26 2016

By Nick Linton-Ffrost

Sideways before lower

We suspect the ASX200 is in the process of completing a (B) wave within a structure correcting the seven month rally from 4700 to 5600. The implication is for 5-10 days trading between 5250 and 5450 heading south via wave (C). Trading above 5450 for more than 3 days negates our view.

Downside Targets

  • the bottom of wave 4 around 5000
  • where (C) = (A) at 49080 based on assumption that (B) tops out around 5435
  • channel break target =4750/4800 (i.e height of channel subtracted from line break point)

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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Reprinted with permission of the publisher. Content included in this article is not by association the view of FNArena (see our disclaimer).

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