Japan’s Nikkei 225 is consolidating between 9400 and 9700. Declining 21-day Twiggs Money Flow warns of selling pressure. Breakout below 9400 would test 9000. Recovery above 9700 is less likely but would indicate the start of another primary advance.
The Seoul Composite Index is testing support at 1950. Respect would confirm the primary up-trend, offering a target of 2150*. Respect of the zero line by 63-day Twiggs Momentum would strengthen the signal.
* Target calculation: 1950+ ( 1950 – 1750 ) = 2150
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.