The Hang Seng dropped 3 percent Monday, testing medium-term support at 19000. Failure of support would warn of a decline to 16000*. 63-Day Twiggs Momentum below zero already suggests a primary down-trend. Breach of primary support at 18000 would confirm.
* Target calculation: 18000 – ( 20000 – 18000 ) = 16000
With the Shanghai Composite in a primary down-trend, all we need is for the Shenzhen Index to break support at 880 to complete the trifecta. A peak below zero on 63-day Twiggs Momentum already warns of a primary down-trend.
* Target calculation: 900 – ( 1000 – 900 ) = 800
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.