Technicals | Sep 19 2016
By Nick Linton-Ffrost
Sideways before lower
We suspect the ASX200 has formed a near term low (wave A) around 5200 after tracing out five waves lower from 5600 and hitting the bottom end of the 7 month uptrend channel. The implication is for 5-10 trading between 5225 and 5425 to form wave (B) before another leg lower towards targets outlined below –
- the bottom of wave 4 around 5000
- where (C) = (A) at 4900/50 based on assumption that (B) tops out around 5400
- 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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