The ASX 200 index retreated sharply Monday, following bearish performance in the US on Friday. Downward breakout from the rising channel would indicate another primary down-swing, with a target of 3800*. Reversal below 3990 would confirm.
* Target calculation: 4000 – ( 4200 – 4000 ) = 3800
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.