The Shanghai Composite displays a similar bullish divergence on 21-day Twiggs Money Flow to the DJ Shanghai Index. Follow-through above 2660 is likely, but resistance at 2820 is expected to hold.
* Target calculation: 2600 – ( 2800 – 2600 ) = 2400
The Hang Seng Index shows a similar (Twiggs Money Flow) bullish divergence to the Shanghai Composite, but both display a sharp fall on 63-day Momentum below zero, warning of a primary down-trend. Expect a rally to test resistance at 21500, but the bear market will continue.
* Target calculation: 19500 – ( 21500 – 19500 ) = 17500
Well done Colin and team , great new format, really excitng times , hope it all goes well QED