Dow Jones Europe Index broke through 260 to signal a primary up-trend. Respect of the zero line by 13-week Twiggs Money Flow confirms strong buying pressure. Target for the advance is 310*.
* Target calculation: 260 + ( 260 – 210 ) = 310
Italy’s MIB Index reflects a similar pattern, signaling an advance to 21000*.
* Target calculation: 17000 + ( 17000 – 13000 ) = 21000
The FTSE 100 is already in a primary up-trend. A trough high above zero on 13-week Twiggs Money Flow indicates strong buying pressure and a likely breakout above resistance at 6100.
* Target calculation: 5700 + ( 5700 – 5000 ) = 6400
The DAX shows similar strong buying pressure and breakout above the 2011 high of 7500 is likely.
* Target calculation: 6400 + ( 6400 – 5400 ) = 7400
It’s good to see the major european indices having a bullish trot after breaking through their respective ascending triangles on the weekly charts. Looking back there was a time when the EURO looked like it was GOING TO THE WALL with mobs of people doing some serious navel gazing. At that time rumour had it that there would be a name change from EURO to MURO. That notion will very unlikely eventuate now.
In a similar fashion the australian ALL ORDINARIES index has been forming an ascending triangle for some time on the weekly chart with the top side being the 4,400 level and the upward sloping side starting from the LOW of August 12th or maybe even later from the LOW of Oct 7th. There could well be a break to the upside through the 4,400 level from about now to mid or late April approximately.