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<\/p>\nBy Nick Linton-Ffrost<\/p>\n
The question for us is whether or not the seven weeks sideways pattern has built a base for another leg higher to 5650 or is it part of a deeper correction towards 5150?<\/p>\n
The odds for the bullish case will firm up if the ASX 200 ( XJO) bounces out of the support level around 5350 and pushes back above 5420-5450. The bounce needs to occur within the next few days and would indicate a corrective pattern between 5570 and 5350 has most likely completed implying a move to 5650.<\/p>\n
On the other hand if we see the XJO trading closing below 5350 for more than 2-3 days the odds will turn in favour drop to 5150.<\/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 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