##{"id":49477,"date":"2016-03-07T10:30:43","date_gmt":"2016-03-06T23:30:43","guid":{"rendered":"http:\/\/www.fnarena.com\/index.php\/2016\/03\/07\/asx200-looking-for-the-break-up\/"},"modified":"2016-03-07T10:30:43","modified_gmt":"2016-03-06T23:30:43","slug":"asx200-looking-for-the-break-up","status":"publish","type":"post","link":"https:\/\/staging.fnarena.com\/index.php\/2016\/03\/07\/asx200-looking-for-the-break-up\/","title":{"rendered":"ASX200: Looking For The Break-Up"},"content":{"rendered":"

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

Why the 5150-5170 level is technically significant<\/strong><\/p>\n

Upside case<\/strong> (daily chart 1) – the ASX200 (XJO) has completed it’s descent from 6000 to 4700 via a five wave structure which implies a corrective bounce towards the top of the 4th at 5400. The 5400 level is also where wave (3) extend 1.618 times the length of (1).<\/p>\n

Trading above 5150\/70 for over 2 days further improves the odds of this call while trading below 5040 (top of wave 1) for more than 2 days turns the odds in favour for a southerly move.<\/p>\n

Downside case<\/strong> (4 hourly chart 2) – assumes that the ascent from 4700 is a three legged corrective rally which should top out around 5170. Under this scenario the 3rd wave completes where wave (3) = (1) = 5170 and the market fails to push above the one year trend line around 5150\/70. The 5170 level is also around the top of the near term uptrend channel.<\/p>\n

If the market fails to push above 5150\/5170 and trades back under 5040 for a couple of days this view will gain traction. The odds further improve if a lower high forms below 5170. Such a move would open up targets around 4700 (channel break target).<\/p>\n

\n $\"\"$ <\/p>\n

\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":"