The ASX 200 is consolidating above primary support — between 4000 and 4150 — while the sharp fall of 13-week Twiggs Money Flow below zero warns of strong selling pressure. Failure of primary support would indicate a decline to 3600*. Recovery above 4150 is unlikely but would suggest another test of 4450.
* Target calculation: 4000 – ( 4400 – 4000 ) = 3600
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.
Great technical analysis! Iook forward toour newsletter. Cheers Jan.