The Shanghai Composite Index is retreating from primary resistance at 2500. Reversal of 63-day Twiggs Momentum below zero warns of continuation of the primary down-trend. Recovery above 2500 is unlikely but would signal the start of a primary up-trend.
Hong Kong’s Hang Seng Index reversed below primary support at 20000 on the weekly chart. Fall of 63-day Twiggs Momentum below zero would strengthen the bear signal, offering an initial target of 17500.
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.