The ASX 200 broke medium-term resistance at 4300, indicating an advance to 4400. Recovery of 63-day Twiggs Momentum above zero suggests a primary up-trend. Breakout above 4400 would confirm, offering an initial target of 4800*.
* Target calculation: 4400 + ( 4400 – 4000 ) = 4800
The biggest obstacle to an ASX up-trend is weakness in China. Signs that a bottom is forming would boost the ASX but that is not evident at present.
Colin Twiggs is a former investment banker with almost 40 years of experience in financial markets. He founded PVT Capital (AFSL number 546090), which provides income and growth strategies to wholesale clients.
Colin also co-founded Incredible Charts and writes the popular Patient Investor newsletter.
Using a top-down approach, Colin identifies macro trends in the global economy and then combines fundamental and technical analysis to evaluate opportunities in sectors that stand to benefit.
Focusing on interest rates and financial market liquidity as primary drivers of the economic cycle, he warned of the 2008/2009 and 2020 bear markets well ahead of actual events.