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<\/p>\nBy Nick Linton-Ffrost<\/p>\n
We suspect the ASX200 (XJO) has completed a five week decline which should be followed by a 5150 – 5450 range bound market over the next 2-3 weeks before another leg lower towards 4900.<\/p>\n
Our view is based on our rising wedge break target and wave count assumptions. We are assuming the break lower from the 12 month rising wedge pattern implies a target near 4900. In wave count terms we suspect the XJO has traced the first leg (A wave) in a series of three waves (i.e corrective structure) towards 4900.<\/p>\n
We suggest watching for sell signals over the next 2-3 weeks with the aim of catching the (C wave) lower. Trading above 5500 for over a week negates our view.
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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