After a week of sideways trading our view remains unchanged. We suspect that the ASX200 (XJO) is trading in the 5th wave up from 4700 which implies a near term top should form between 5550 and 5600 over the 10-15 days.<\/p>\n
Our view is based on the assumption that 5500\/5600 is a target “achievement level” derived from the break at 5300 and where wave ‘5’ = ‘1’. At times these target achievement levels can create reversal points. In addition the top end of the up trend channel (red) make create some reasonable resistance.<\/p>\n
If a pull back does occur we will expecting it to take around 3-4 weeks and marking it as a near term correction within our medium term bullish count. This view will be negated after 3-5 days trading above 5600.<\/p>\n
Our medium term view assumes that the drop from 6000 to 4750 was a major (4) which implies the market is trading within a major (5) towards the 6000 line break target (i.e. height of 10 mth trend channel added to the 5150\/5200 break point).<\/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