Australia

The Australian index completed a-b-c pullback in wave 4 and it looks like wave 4 pullback is complete as the weekly momentum indicator is back to the equilibrium point. Wave 5 should now unfold and it can stretch towards the upper end of the rising channel which is currently pegged at 8588 levels. Here, wave 3 is shorter than wave 1, and therefore, wave 5 can be truncated. On the way down, the 40DEMA, which is at 7405 will be a crucial support level to watch out for in the forthcoming weeks.