Dow Jones Europe Index respected resistance at 260, suggesting another correction. Declining 13-week Twiggs Money Flow indicates medium-term selling pressure; but a trough that respects the zero line would signal a primary up-trend. Respect of support at 240 would also suggest an up-trend.
* Target calculation: 260 + ( 260 – 210 ) = 310
The FTSE 100 is headed for a test of support at 5600. Respect of support would confirm the primary up-trend, as would a 13-week Twiggs Money Flow trough above zero.
* Target calculation: 5500 + ( 5700 – 5100 ) = 6300
Colin Twiggs is a former investment banker with almost 40 years of experience in financial markets. He co-founded Incredible Charts and writes the popular Trading Diary and Patient Investor newsletters.
Using a top-down approach, Colin identifies key macro trends in the global economy before evaluating selected opportunities using a combination of fundamental and technical analysis.
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.
He founded PVT Capital (AFSL No. 546090) in May 2023, which offers investment strategy and advice to wholesale clients.