Monday, 9 November 2015

ASX 200 plunges lower through neckline of Head & Shoulders top, measured target 4900

Daily chart shows the ASX 200 today plunged lower through the neckline of a Head and Shoulders top. A measured target for the move is 4900, derived by subtracting the height the Head from the level of the neckline. 4900 coincides more or less with the September low, and is simply a short term target. Given the larger degree down trend, any surprises will be to the downside. The purple short term up trend lime may or may not act as a speed bump. Let's see.

Monthly chart shows that the market is again testing long term trend line support. A move to 4900 would certainly not diminish the chances of this Elliott Wave count and scenario playing out over the coming year.