Technicals | Aug 04 2014
By Nick Linton-Ffrost
We suspect the ASX200 rally from 5360 to 5640 is now complete. Friday's sell-off should be followed by a bounce towards 5580 from where we expect to see another decline towards 5450 and potentially 5300 over the next month.
Our view is based on the combination of the achievement of upside target levels around 5610-25 as well as Friday's drop below the pivot level at 5570. Break and count target can create strong reversal levels while trading below the recent major high in April (5570) indicates the market is running out of puff.
We suggest looking for sell signals between 5530 and 5600 over the next week or two.
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 27years experience.
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