NZX50

The NZX 50 index is testing resistance at 3350 after bullish divergence on 21-day Twiggs Money Flow. The index fell sharply at Tuesday’s open but had recovered all of its lost ground by the close. Breach of the declining trendline indicates that the primary trend is weakening. Breakout above 3350 would indicate another test of the May 2011 high at 3580. Reversal below 3250 is unlikely, but would re-test primary support at 3100.