The ASX 200 broke out above its descending trendline — warning that the down-trend was ending — but ran into selling pressure. Bearish divergence on 21-day Twiggs Money Flow confirms the tall shadow on Friday’s candle. Respect of support at 4100 would suggest a primary up-trend, while failure would re-test primary support at 3850.
* Target calculation: 4300 + ( 4300 – 3900 ) = 4700
Support levels are clearer on the weekly chart.
I’d like to learn on how did you decide to draw the horizontal line at 4100?
I often wonder how you draw all of these horizontal lines? What are the rules?
Thanks
I wish I had a clear set of rules for this. The lines are fitted visually. It may be clearer why I picked 4100 on the weekly chart.