{"id":65395,"date":"2015-07-13T10:28:24","date_gmt":"2015-07-13T00:28:24","guid":{"rendered":"http:\/\/www.fnarena.com\/index.php\/2015\/07\/13\/downside-still-favoured-for-asx200\/"},"modified":"2015-07-13T10:28:24","modified_gmt":"2015-07-13T00:28:24","slug":"downside-still-favoured-for-asx200","status":"publish","type":"post","link":"https:\/\/staging.fnarena.com\/index.php\/2015\/07\/13\/downside-still-favoured-for-asx200\/","title":{"rendered":"Downside Still Favoured For ASX200"},"content":{"rendered":"

By Nick Linton-Ffrost<\/p>\n

Medium Term View: Rally to 5800 over next 1-2 months followed by a correction to 5200<\/strong><\/p>\n

After a volatile two weeks the ASX200 (XJO) has carved out a range between 5400 and 5600. A break out of this range should produce a 200 point move. We favour the upside break above 5600 which would indicate a rally to 5800, while trading below 5400 implies a dip to 5200.<\/p>\n

We\u00a0suspect that the move lower from 6000 to 5400 (wave A) is now complete given the\u00a0five wave count. The implication is for a 1-2 month sideways market trading between 5500 and\u00a05800. This view is contingent on the XJO remaining above 5400 and breaking above 5600 pivot level and trend line. The break needs to occur with the next 3-5 days. Our excepted\u00a0target would be\u00a0around 5800 (height of channel\u00a0added to break point).\u00a0If this view comes to fruition we will be counting the rally as a B wave which should last for 1-2 months. Once that structure is complete the implication is for a\u00a0decline\u00a0towards 5200.<\/p>\n

If the market remains below 5600 for more than a week and\/or trades below 5400 the odds will turn in favour of a drop to 5100 \u2013 5200 (i.e. bottom of major 4th wave). We would expect a strong bounce from 51000 ( say 300-400 points).<\/p>\n

\u00a0<\/p>\n

\"\"<\/p>\n

\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

Find out why FNArena subscribers like the service so much: “Your Feedback (Thank You)<\/a>” – Warning this story contains unashamedly positive feedback on the service provided.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Nick Linton-Ffrost of Fifth Wave suggests the ASX200 may see a rally back to 5800 from its current level before correcting once more.<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[7],"tags":[],"acf":[],"_links":{"self":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/posts\/65395"}],"collection":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/comments?post=65395"}],"version-history":[{"count":0,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/posts\/65395\/revisions"}],"wp:attachment":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/media?parent=65395"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/categories?post=65395"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/tags?post=65395"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}