The ASX200’s (XJO) reaction the 5580-5600\u00a0pivot level over the next 2-5 days should determine the markets direction for the next few weeks.<\/p>\n
If the market holds above 5580-5620 for over 2-3 days the odds will turn in favour of a corrective rally to 5900. In this case the 5\/20 MA’s would cross into a buy and a line break trade would come into play. Upside break target derived from height of channel added to break point.<\/p>\n
If however the market remains below 5620\u00a0and pushes back under 5525 within the next few days then we will be expecting the market to track lower in\u00a0a fifth wave structure. That is we will be assuming the 4th wave has terminated at 5620. Under this scenario our near term target is\u00a0around 5300 and our\u00a0medium term target would be 5100.
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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