##{"id":49975,"date":"2016-06-06T10:27:48","date_gmt":"2016-06-06T00:27:48","guid":{"rendered":"http:\/\/www.fnarena.com\/index.php\/2016\/06\/06\/asx200-5350-is-the-pivot-level\/"},"modified":"2016-06-06T10:27:48","modified_gmt":"2016-06-06T00:27:48","slug":"asx200-5350-is-the-pivot-level","status":"publish","type":"post","link":"https:\/\/staging.fnarena.com\/index.php\/2016\/06\/06\/asx200-5350-is-the-pivot-level\/","title":{"rendered":"ASX200: 5350 Is The Pivot Level"},"content":{"rendered":"

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

Pivot Levels<\/strong><\/p>\n

The bottom line for us is whether the rally in the ASX200 (XJO) from 4900 to 5425 has completed a ‘C’ wave or is part of a 3rd wave. We suspect the next few days trading will give us the answer. If the market is trading within a 3rd wave (top chart) the implication is for a rally to 5725 where ‘3’ approximates 1.618 times the length of wave’1′. From there we would expect a pull back to complete wave 4 before a move towards 5880-6000.<\/p>\n

Our 5880 target is derived from the break above the one year downtrend line at 5200 and 6000 is 75% of the height of the nine month range added to the break point around 5425\/50.<\/p>\n

We think that trading above 5350 for more than 2 days should be enough to start the move higher. This view is contingent on the XJO holding above 5275\/90 and pushing above 5350 within the next few days.<\/p>\n

If the market has completed a ‘C’ wave (bottom chart) the implication is for 1-2 months trading between 4800 and 5300. We suspect if the market holds below 5350 and spends 2 days below 5275 that odds will turn in favour for a move south to 5100 (midpoint of the 9 mth pattern) followed by a bounce to 5250 before heading lower.<\/p>\n

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Another 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

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