##{"id":49409,"date":"2016-02-22T10:30:45","date_gmt":"2016-02-21T23:30:45","guid":{"rendered":"http:\/\/www.fnarena.com\/index.php\/2016\/02\/22\/asx200-pullback-before-rally\/"},"modified":"2016-02-22T10:30:45","modified_gmt":"2016-02-21T23:30:45","slug":"asx200-pullback-before-rally","status":"publish","type":"post","link":"https:\/\/staging.fnarena.com\/index.php\/2016\/02\/22\/asx200-pullback-before-rally\/","title":{"rendered":"ASX200: Pullback Before Rally"},"content":{"rendered":"

By Nick Linton-Ffrost<\/p>\n

Pullback expected to 4880 over the next week before a rally to 5400 over the next 1-2 months<\/strong><\/p>\n

Our view is based on the following –<\/p>\n

\n
descent from 6000 has completed five waves which improves odds for rally to 5400 (refer last week's note for longer dated charts)<\/li>\n
5400 target based on our “return to top of the 4th wave once five have completed” rule of thumb<\/li>\n
break of 6 weeks trend line implies a 5400 target which is the height of pattern added to 4880 break point<\/li>\n
failed break below the Sep-Oct 4900-5400 structure improves odds for a rally to the top end of range at 5400<\/li>\n
5\/20 moving averages crossed over and both pointing north. (MA’s cross overs are indicators not trading triggers)<\/li>\n<\/ul>\n
We suspect the rally from 4700 to 5020 is the first wave within a five-legger to 5400 and are expecting a pull back to 4880 (wave 2) which would form a higher low. The rationale for the pull back is based on –<\/p>\n
\n
minor five count within wave ‘1’ implies completion and improves odds for a pull back (chart 2)<\/li>\n
US markets have achieved near term upside targets (chart 3)<\/li>\n
a pull back should find its feet around the 4880 break level which is also the bottom of the minor 4th<\/li>\n<\/ul>\n
Bear case<\/strong> – trading below 4880 for more than 3 days negates our view and would imply a test of 4700 support<\/p>\n
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\nAnother trading idea from<\/strong><\/p>\n
Fifth Wave |<\/strong> fwtc.com.au<\/strong><\/a> <\/p>\n
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<\/strong>.<\/strong><\/p>\n
AFSL 319830 |<\/strong> Disclaimer<\/strong><\/a><\/p>\n
Reprinted with permission of the publisher.<\/em> Content included in this article is not by association the view of FNArena (see our disclaimer<\/a>).<\/em><\/p>\n
Technical limitations <\/strong><\/em><\/p>\n
If you are reading this story through a third party distribution channel and you cannot see charts included, we apologise, but technical limitations are to blame.<\/strong><\/em><\/p>\n
Find out why FNArena subscribers like the service so much: "Your Feedback (Thank You)<\/a>" – Warning this story contains unashamedly positive feedback on the service provided.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"
Nick Linton-Ffrost of Fifth Wave expects a pullback for the ASX200 before a rally to 5400 can commence.<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[7],"tags":[],"acf":[],"_links":{"self":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/posts\/49409"}],"collection":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/comments?post=49409"}],"version-history":[{"count":0,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/posts\/49409\/revisions"}],"wp:attachment":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/media?parent=49409"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/categories?post=49409"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/tags?post=49409"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}