##{"id":65703,"date":"2015-09-21T10:06:38","date_gmt":"2015-09-21T00:06:38","guid":{"rendered":"http:\/\/www.fnarena.com\/index.php\/2015\/09\/21\/asx200-more-down-before-up\/"},"modified":"2015-09-21T10:06:38","modified_gmt":"2015-09-21T00:06:38","slug":"asx200-more-down-before-up","status":"publish","type":"post","link":"https:\/\/staging.fnarena.com\/index.php\/2015\/09\/21\/asx200-more-down-before-up\/","title":{"rendered":"ASX200: More Down Before Up?"},"content":{"rendered":"

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

5250 and 5000 are still the levels to watch over the next week<\/strong><\/p>\n

After trading sideways for 20 days the question remains, has\u00a0the ASX200 (XJO) formed a bottom which would indicate a bounce to 5500; or has the market carved out a\u00a0bearish triangle (4th wave)\u00a0which would\u00a0imply\u00a0a dip towards 4600?<\/p>\n

We expect a break out of this range over the next week and slightly favour\u00a0a downside move.\u00a0Trading below 5000 triggers a sell while a push above 5250\u00a0would indicate a bottom has formed.<\/p>\n

We would not be surprised to see a sell-off into the first 1-2 weeks of October followed by strong bounce. We suggest investors buy into the sell-off it eventuates.<\/p>\n

Bottoming\u00a0view (Chart 1)<\/strong><\/p>\n

\n
the “C” wave within the decline from 6000 has\u00a0completed it’s move at 4800\u00a0where “C” approximates “A”<\/li>\n
bounce from 4800 to 5300 is wave one followed by a higher low forming at 4980 (wave 2)<\/li>\n
trading above 5250 indicates that a third wave rally towards 5500 is underway (i.e. where wave 3 approximates wave 1)<\/li>\n<\/ul>\n
View is contingent on the XJO holding above 5000\u00a0and breaking above 5225 within the next 2-5\u00a0days<\/p>\n
Bearish Triangle\u00a0(chart 2)<\/strong><\/p>\n
\n
the move lower from 5700 to 4800 is the third wave within a decline from 6000<\/li>\n
the last 20 days\u00a0trading has formed a 4th wave (triangle pattern) where a break below 5000 improves the odds for a 5th wave move to 4800 and potentially 4600<\/li>\n
the\u00a04800 target is the\u00a0previous low at 4800. The 4600 is the height of triangle subtracted from\u00a0the break point around 5025<\/li>\n
given the move to 4600-4800 would be a 5th wave the implication is for a strong bounce from those levels to 5250<\/li>\n<\/ul>\n
View contingent on the XJO remaining below 5325 and dropping below 5000\u00a0within the next 2-5\u00a0days.
\n\u00a0<\/p>\n
$\"\"$
\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 is poised to break out of its lastest range, with downside favoured ahead of a rebound.<\/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\/65703"}],"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=65703"}],"version-history":[{"count":0,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/posts\/65703\/revisions"}],"wp:attachment":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/media?parent=65703"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/categories?post=65703"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/tags?post=65703"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}