Bullish divergence on Japan’s Nikkei 225 index (13-week Twiggs Money Flow) warns of a bear market rally. Breakout above the upper channel of the broadening wedge pattern would confirm. The primary trend, however, remains downward; breakout below the lower channel at 8400 would warn of a down-swing to 7800*.
* Target calculation: 8400 – ( 9000 – 8400 ) = 7800
The Seoul Composite is weaker on Wednesday after a sharp rally earlier in the week. 13-Week Twiggs Money Flow continues to threaten a break below zero. Breakout below the lower border of the broadening wedge formation would signal another primary decline.
* Target calculation: 1650 – ( 1900 – 1650 ) = 1400
Thank-you, thank-you for bringing back the S. Korea commentary!
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