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
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,