We continue to run with the assumption that the ASX200 (XJO) is trading within\u00a0the fifth wave of a rally from 5100 which implies a near top top should form between 5950 and 6100. If a reversal does occur\u00a0we will be looking for a pull back to at least 5700 and potentially 5500. These levels are derived from the triangle break target at 5950 and the 6100 level is indicated where the 5th wave\u00a0will approximate the length of wave one.<\/p>\n
We do not recommend shorting the market until clear reversal signals occur such strong reversal day followed by the formation of a lower high between 5950 and 6100 or a series of 3-5 days with lower lows and lower highs. We do however suggest reducing long positions between our target\u00a0levels.<\/p>\n
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Another trading idea from<\/strong><\/p>\n Fifth Wave |<\/strong> fwtc.com.au<\/strong><\/a>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/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 \u00a0AFSL 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