Technicals | Dec 15 2014
By Nick Linton-Ffrost
More downside towards 5000
We suspect the ASX200 (XJO) to move towards 5000 over the next 3-4 weeks.
The view is based on our rising wedge pattern and near term wave count assumptions. The break lower from the 12 month rising wedge pattern implies a target near 5000 and the preceeding pull back and roll away from the trendline around 5550 confirms the pattern break and improves the odds for completion of the 5000 break target.
Timing wise we are assuming that the market is three weeks into the C wave which implies the 5000 target should be reached within the next 3-4 weeks. It is also worth noting that the wave count target where wave C equals the length of wave A is also around 5000.
Trading above 5400 for two weeks negates our view.
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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