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.<\/p>\n
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 as a strong reversal day followed by the formation of a lower high below\u00a06100 or a series of 3-5 days with lower lows and lower highs. We suggest reducing long positions between our target\u00a0levels.
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![\"\"](\"http:\/\/www.fnarena.com\/ckfinder\/userfiles\/images\/ffxjo_26.jpg\")
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\nAnother 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