Hong Kong’s Hang Seng Index fall below 20000 confirms the earlier primary down-trend signaled by 63-day Twiggs Momentum reversal below zero. Expect a rally to test the new resistance level at 20000. Respect would indicate a decline to 17500. Recovery above 20000 is unlikely but would warn of a bear trap.
Dow Jones Shanghai Index is more resilient, respecting the rising trendline and with 63-day Twiggs Momentum above zero. Breakout above 310 would signal a primary up-trend, but penetration of the rising trendline would test primary support at 275.
* Target calculation: 310 + ( 310 – 280 ) = 340; 280 – ( 310 – 280 ) = 250
Colin Twiggs is a former investment banker with almost 40 years of experience in financial markets. He co-founded Incredible Charts and writes the popular Trading Diary and Patient Investor newsletters.
Using a top-down approach, Colin identifies key macro trends in the global economy before evaluating selected opportunities using a combination of fundamental and technical analysis.
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.
He founded PVT Capital (AFSL No. 546090) in May 2023, which offers investment strategy and advice to wholesale clients.