The weekly chart of the ASX 200 shows the index testing resistance at 4350/4400 in a bullish ascending triangle. Recovery of 63-day Twiggs Momentum above zero suggests a primary up-trend. We need to be cautious because of bearish sentiment in the US and Europe but breakout above 4400 would signal the start of a primary up-trend, with an initial advance to 5000*.
* Target calculation: 4400 + ( 4400 – 3800 ) = 5000
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.
The NH NL 20 days index has been very negative and indicates a very strong negative divergence
hi colin. well done. note the repeating .786 retracements from the deep low in august. each rally retraced .786 until a .50 retracement in feb, after which we had the breakout, which we all hope for a continuation. well, maybe not everyone hopes for this.
Thanks Dave. Asia looking stronger may be enough to lift us out of the doldrums.
please explain the NH NL 20day index.
thanks,