We expect Woolworths ((WOW)) will bounce towards 34.50 over the next 2-3 weeks after achieving downside break targets.<\/p>\n
Our view is based on the combination of wave count assumptions, trend line break targets and Friday’s reversal day. We suspect that the sell-off from 39.00 to 31.00 has traced out 5 waves which improves the odds for a near term bounce. In addition WOW has now achieved the break targets derived from the trend line break at 35.50, these levels can create strong reversal levels.<\/p>\n
It is also worth mentioning Friday’s strong reversal signal (ie new lows followed by close on highs). This price action when combined with our previous assumptions significantly improves the odds for a corrective rally. We therefore suggest looking for buy signals over the next 3-5 days such as a higher low or a series of three days with higher highs and lows. Trading below 31.00 for more than 2-3 negates our view.<\/p>\n
Trading tactics<\/strong><\/p>\n Wait for buy signals. \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
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