The Shanghai Composite Index rallied strongly above 2300 after breaking out of its downward trend channel. 13-Week Twiggs Money Flow rising strongly indicates good buying pressure. Expect resistance at 2550. Breakout above this level would offer a weak (primary) reversal signal. Stronger confirmation would come if retracement successfully tests support at 2300.
Hong Kong’s Hang Seng Index has already started a primary up-trend, with an initial target of 22,500*. Reversal below 21,000 would signal retracement to test the new support level at 20,000, but 13-Week Twiggs Money Flow again indicates buying pressure and we can expect the primary up-trend to continue.
* Target calculation: 20,000 + ( 20,000 – 17,500 ) = 22,500