Friday's reversal day in the ASX200 may have put in place a higher low at 5120 (wave 2 yellow text). Trading above 5200 for 1-2 days would improve the chances of this scenario and should trigger a move above 5300.<\/p>\n
A break above 5300 would be significant given it is the top of wave 1 (yellow text) and also breaks above the seven month trend line. The trend line down from 6000 is significant given it has been touched at four points.<\/p>\n
If a higher low does form at 5120 the minimum target is 5450 (where wave 3 approximates wave 1). The trend line break is around 5800 where the trend channel height is added to the break point at 5300.<\/p>\n
Trading below 5100 for more than 1-2 days negates our view and should set up a move to major support at 4900.
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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