Asian pennants

Japan’s Nikkei 225 Index displays a wide pennant formation, suggesting continuation of the down-trend. 21-Day Twiggs Money Flow deep below zero indicates selling pressure. Breakout below 8800 would offer a target of 7800*. Upward breakout is less likely, but would test resistance at 9300/9400.

Nikkei 225 Index

* Target calculation: 8800 – ( 9800 – 8800 ) = 7800

The Seoul Composite Index displays a similar pennant. Friday’s red candle on stronger volume confirms selling pressure. Downward breakout is likely and would offer a target of 1500*.

Seoul Composite Index KOSPI

* Target calculation: 1800 – ( 2100 – 1800 ) = 1500