Our upside view is based on the following assumptions –<\/p>\n
- \n
- five wave move lower from 6000 to 5400 implies the corrective A wave is complete<\/li>\n
- Break above 5600 pivot level (top of wave “i” ) and trend line break point triggers a buy with target at 5850\/5900<\/li>\n
- B wave target is derived from channel height added to break point at 5600<\/li>\n
- 5\/20 moving average cross over in a northerly direction adds weight to the upside case<\/li>\n
- we expect the rally to take 4-6 weeks to complete which should be followed by a C wave to 5300 (where C=A)<\/li>\n
- view contingent on XJO not trading below 5550 for more then 2-3 days<\/li>\n<\/ul>\n
Alternative view – trading below 5550 for over 2-3 days improves odds for a flatter B wave structure. In this case we would expect 3-5 weeks of sideways trading between 5400 and 5600 before a break lower to 5100.
\n <\/p>\n![\"\"](\"http:\/\/www.fnarena.com\/ckfinder\/userfiles\/images\/ffxjo44.jpg\")
<\/p>\n\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