Posted on by ColinTwiggs

Kiwi 50 face strong selling pressure

The NZ50 Index is retracing to test 3300, but 13-week Twiggs Money Flow deep below zero warns of strong selling pressure. Respect of resistance is likely, followed by another test of support at 3100.

New Zealand NZ50 Index

* Target calculation: 3300 – ( 3600 – 3300 ) = 3000

7 Replies to “Kiwi 50 face strong selling pressure”

  1. Mr. Twiggs,
    I just wanted to thank you for sharing all your no nonsense expertise with us.
    Respectfully, Barry Lowery

  2. How can you envisage the Hang Seng rising when the western markets all look like trouble ahead? To me, the Hang Seng will follow the US’ lead, maybe not as much, but it will still move lower in my view. You are forecasting a level of decoupling that has not occurred in recent times if I’m reading you correctly?

    1. Richard, The long-term trend for Hang Seng is down and unlikely to change. Medium term, however, I see buying pressure generating a stronger bear rally in HongKong and Shanghai than in other Asian centers. Not rising — just falling at a slower rate. Regards, Colin

  3. Hi Colin,
    I really appreciate all your work. One thing that has me wondering is why do you conduct your analysis of the different markets using a different indicator and time frame. Would it not be better to be consistent and display a consistent approach to your analysis using one timeframe and your favourite indicator.

    I just follow price action and am not a big fan of a derivative indicator and I believe that if you focus on price action that is all you need. Indicators will and do fail and will let you down.
    Regards
    Noel

    1. Noel, I agree that it is all there on the price chart — but sometimes not that clear because of market noise. The indicators help to highlight patterns that may be obscured. I only use two, Money Flow and Momentum, both of which are tweaked to suit my purposes. Regards, Colin

  4. Thank you to share your thoughts with all of us.
    For now with major enocomies forced to cut public expending, coming 12 months will bring far less growth tan initially estimated and markets are at an early stage reflecting that.
    Ignacio

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