##{"id":65584,"date":"2015-08-24T10:32:27","date_gmt":"2015-08-24T00:32:27","guid":{"rendered":"http:\/\/www.fnarena.com\/index.php\/2015\/08\/24\/asx200-correction-or-trend-change-2\/"},"modified":"2015-08-24T10:32:27","modified_gmt":"2015-08-24T00:32:27","slug":"asx200-correction-or-trend-change-2","status":"publish","type":"post","link":"https:\/\/staging.fnarena.com\/index.php\/2015\/08\/24\/asx200-correction-or-trend-change-2\/","title":{"rendered":"ASX200: Correction Or Trend Change?"},"content":{"rendered":"

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

Correction or trend change?<\/strong><\/p>\n

After breaking below the 4 year trend line the question is whether or not this move is a correction or a change in trend. We have outlined both scenarios below and slightly favour the correction view given the longer term trend remains north.<\/p>\n

1. Correction = expect a bounce from 5050-5100<\/strong><\/p>\n

\n
the four year rally completed five waves at 6000 which implies a three wave correction to 5100<\/li>\n
target based on our rule of thumb where the market returns to the bottom of the 4th wave after a 5th completion<\/li>\n
three wave count where wave "a" = 6000 to 5380 and "b" = 5380 to 5725. Implication is for a "c" wave to 5100 where "c=a"<\/li>\n
bottom finding should take 3-4 weeks with a bounce target at 5400
\n\t <\/li>\n<\/ul>\n
$\"\"$ <\/p>\n
\n2. A trend change implies a five wave decline to 4750<\/strong><\/p>\n
\n
the break of the 4 year uptrend channel implies a move to 4750 (i.e. height of channel less the break point at 5500)<\/li>\n
wave count assumes the "c" wave from scenario above morphs into a 3rd wave within a series of five<\/li>\n
timing to target = 5-7 weeks
\n\t <\/li>\n<\/ul>\n
$\"\"$ <\/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
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 favours the technical view that a move down to 5100 represens a correction, but a trend change is also possible.<\/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\/65584"}],"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=65584"}],"version-history":[{"count":0,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/posts\/65584\/revisions"}],"wp:attachment":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/media?parent=65584"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/categories?post=65584"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/tags?post=65584"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}