Technicals | Jul 18 2016
By Nick Linton-Ffrost
Near term target at 5575 with a medium term target range between 5800 and 6000
In the near term we are assuming that the ASX200 (XJO) is trading in the 5th wave up from 4700 which should terminate around 5775. Our target is derived from the height of wave ‘1’ added to the 5300 break point and where wave ‘5’ = ‘1’.
We suspect that last weeks strength improves the odds for our medium term bullish count coming into play. Under this scenario we assume that the drop from 6000 to 4750 completed a major (4) which implies the market is trading within a major (5) towards 5800 – 6000. This target range is derived from the the 10 month downtrend line break (i.e. height of trend channel added to break point around 5150/5200).
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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