Technicals | Oct 17 2016
By Nick Linton-Ffrost
Move south expected towards 5100 over the next few weeks
We suspect the ASX1200 (XJO) has completed the ‘B’ wave within the three legged corrective view we have been working with for the last 2 weeks. The implication is for a ‘C’ wave lower to 5050/5100.
Our corrective view is based on the assumption that after completing five waves higher from 4700 to 5600 the market should trace out an ‘ABC’ correction.
If the plan comes together we will be looking for a downside move over the next 5-7 weeks. Our 5050/5100 target range is derived from where ‘C’ approximates wave ‘A’.
Trading above 5500 for more than 2 days negates our view and should set up a move to resistance at 5600.
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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