Short term Elliottwave structure suggests wave C rally from 2/10 low is unfolding as 5 waves, where wave ((i)) ended at 5047.1, wave ((ii)) ended at 4905.5, and wave ((iii)) ended at 5245. Wave ((iv)) FLAT can be called complete at 5147.4, although a marginal low at this stage still can’t be ruled out. While pivot at wave ((ii)) low at 4905.4 stays intact, the index still has scope to extend one more leg higher in wave ((v)) towards 5300 area to finish wave (X) and end the cycle from 2/10 low. Once wave ((v)) is complete, ASX should at least pullback in 3 waves to correct the rally from 2/10 low. We don’t like buying the proposed bounce, and expect wave ((v)) rally to fail below 10/26 peak at 5423.3 for at least 3 waves pullback.
