India’s Sensex index found support at 17000. Recovery above 17500 would indicate respect of the support level and another attempt at 18500. 63-Day Twiggs Momentum oscillating above zero already indicates a primary up-trend but only recovery above the November high of 18000 would confirm. Target for an advance would be 20000*.
* Target calculation: 18.5 + ( 18.5 – 17.0 ) = 20.0
The Nifty index is similarly testing support at 5200, while recovery above 5400 would confirm the primary up-trend. Target for an advance would be 6000*.
* Target calculation: 5600 + (5600 – 5200) = 6000
Singapore’s Straits Times Index continues in a narrow consolidation above the double-bottom neckline at 2900, suggesting continuation of the primary up-trend. Target for the expected breakout would be 3200*.
* Target calculation: 2900 + ( 2900 – 2600 ) = 3200
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.