Watch the price action between 35.50 and 37.00 over the next 5-10 days for the next clue.<\/p>\n
Rationale<\/strong><\/p>\n After breaking out of what appears to be a triangular pattern Woolworths ((WOW)) is testing the 12 months high near 37.00. We suspect this level will provide strong resistance first time around and should produce a pull back towards 35.00-36.00. After that pullback we slightly favour a 5th wave rally to the triangle target around 39.00.<\/p>\n Before trying to capture this 5th wave move we need to wait and see how the 4th wave pull back reacts. This view is contingent upon 34.50-35.00<\/span>34.50-35.00 support holding.<\/p>\n The alternative scenario is to argue that WOW remains range bound between 32.00 and 37.00 and therefore looking for shorting signals at current levels is the way to go. Before trading this view we suggest waiting for lower highs to form between 36.00 and 37.00 and then looking for a move back to the midpoint of the pattern around 34.50.<\/p>\n \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 27years 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![\"\"](\"http:\/\/www.fnarena.com\/ckfinder\/userfiles\/images\/ffwow.jpg\")
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