We suspect the ASX200 (XJO) has formed a medium term top at 6000 and we are assuming that slide from 6000 to 5740 is an “a” wave within a move lower to 5600-5550. We expect to see some sideways price action between 5800 and 5925 over the next 2-3 days before the next leg lower.<\/p>\n
We therefore suggest selling rallies closer to 5925 or waiting for a lower high to form before opening shorts. It is worth noting that the 5\/20 MA’s have crossed into a sell. We only use MA’s as a secondary indicator not a trading trigger.<\/p>\n
Our alternative view is that the move from 6000 to 5740 is part of a 4th wave consolidation which will provide a base for a rally to 6100. Trading above 5950 for more than three days would turn the odds in favour of that 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