The market appears to be breaking down from a two month zig-zag pattern (4th) within the move lower from 6000. The implication is for a 5th wave lower to targets between 4650 and 4800 (previous major low and height of pattern target). Such a move would be expected to take 2-3 weeks and be followed by a bounce back to 5400 (top of 4th) over the following 1-2 months.<\/p>\n
There is a chance that a near term low may form near 4900 given that the move lower from 5400 and 4900 has traced out five waves. Under this scenario we would expect the 5th wave to complete around 4900 (wave ‘v’ = wave ‘i’) over the next few days and be followed by a rally to 5150-5200.
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\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