##{"id":50013,"date":"2016-06-14T10:34:22","date_gmt":"2016-06-14T00:34:22","guid":{"rendered":"http:\/\/www.fnarena.com\/index.php\/2016\/06\/14\/asx200-5250-critical-level\/"},"modified":"2016-06-14T10:34:22","modified_gmt":"2016-06-14T00:34:22","slug":"asx200-5250-critical-level","status":"publish","type":"post","link":"https:\/\/staging.fnarena.com\/index.php\/2016\/06\/14\/asx200-5250-critical-level\/","title":{"rendered":"ASX200: 5250 Critical Level"},"content":{"rendered":"

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

Reaction to 5225\/5250 should determine direction for the next two weeks<\/strong><\/p>\n

The question for us is whether the last months trading has formed a bullish or bearish pattern. In wave count terms this equates to whether the rally in the ASX200 (XJO) from 4900 to 5425 is part of a 3rd wave which implies a rally to 5725 or is a ‘C’ wave completion which implies a pull back to 5100.<\/p>\n

We suspect the markets reaction to the 5225\/5250 level over the next 2-3 days will determine if last weeks dip from 5390 is a correction before heading above 5430 (refer chart 2) or a the start of a trend change towards 5100 (chart 4). These charts magnify the last two weeks trading in order to illustrate the minor wave count possibilities.<\/p>\n

If the market bottoms around 5225\/5250 (where ‘c’ = ‘a’) over the next 1-2 days and is followed by a move above 5275\/5300 (chart 2) then the bullish count outlined below should come into play. However if the market trades below 5225 for more than 3 days then the bearish count may be on the cards.<\/p>\n

Bullish count (chart 1) – assumes the market is trading within a 3rd wave which should terminate around 5725 ( where wave ‘3’ is 1.618 times the length of wave’1′). From there we would expect a 4th wave pull back before a 5th towards 5800-6000.<\/p>\n

Bearish count (chart 3) – assumes the market has completed a ‘C’ wave which implies a move lower the 5100 (midpoint of the 9 mth range) over the next few weeks. Trading below that level would imply a test of 9 mth support around 4800.<\/p>\n

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

<\/p>\n

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

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":"