Upside<\/strong> – trading above 5400 for the ASX200 (XJO) would confirm that a higher low is in place at 4950 and indicate that the ‘ABC’ correction lower from 6000 is complete. That wave count implies targets above 6000 over a period of a 3-5 months.<\/p>\n In the near term the move above 5400 implies a 5900 target which is based on the height of the 3 month sideways pattern added to the break point at 4900. There is also the trend line break target to consider which kicks in around the same level.<\/p>\n Downside<\/strong> – while 5400 resistance remains intact working with a bearish five wave count lower from 6000 is feasible. The implication is that the 3 month trading range is a 4th wave structure which implies a 5th lower to 4400-4500.<\/p>\n Trading below 4900 should trigger such a move (i.e. height of pattern less break point), however if the XJO trades below 5100 for 1-2 days that would be an early warning signal of the move south.<\/p>\n \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![\"\"](\"http:\/\/www.fnarena.com\/ckfinder\/userfiles\/images\/ffxjo61.jpg\")
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