Australia’s ASX 200 retreated below the band of resistance at 4350/4400. Recovery above 4400 would confirm the primary up-trend signaled by the 63-day Twiggs Momentum cross to above zero. Target for an advance would be the 2011 high at 4900*.
* Target calculation: 4400 + (4400 – 3900) = 4900
On the daily chart, however, bearish divergence on 21-day Twiggs Money Flow highlights medium-term selling pressure, warning of a correction. Breach of the rising trendline and support at 4250 would confirm, signaling another test of primary support at 4000.
Are you saying – Sell below 4250 and buy above 4400?
What Close would you need to see in either case?
Exactly when to buy or sell will depend on your investment/trading time frame but respect of support at 4250 would signal that the up-trend is intact while failure would indicate the opposite. A Close would give a stronger signal than an intra-day breakout.