We suspect the ASX200 (XJO) to move towards 5000 over the next 3-4 weeks.<\/p>\n
The view is based on our rising wedge pattern and near term wave count assumptions. The break lower from the 12 month rising wedge pattern implies a target near 5000 and the preceding pullback and roll away from the trendline around 5550 confirms the pattern break and improves the odds for completion of the 5000 break target.<\/p>\n
Timing wise we are assuming that the market is three weeks into the C wave which implies the 5000 target should be reached within the next 3-4 weeks. It is also worth noting that the wave count target where wave C equals the length of wave A is also around 5000.<\/p>\n
Trading above 5400 for two weeks negates our view.
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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