China’s Shanghai Composite Index is testing its upper trend channel at 2160. Follow-through would indicate a rally to 2250, while reversal would indicate a decline to 2040*. 63-Day Twiggs Momentum continues to signal a strong primary down-trend.
* Target calculation: 2100 – ( 2160 – 2100 ) = 2040
Hong Kong’s Hang Seng Index, however, broke through resistance at 20000 (weekly chart), indicating an advance to 22000*. Recovery of 63-Day Twiggs Momentum above zero would confirm — further strengthened if the descending trendline is penetrated.
* Target calculation: 20 + ( 20 – 18 ) = 22
Japan’s Nikkei 225 index continues to warn of strong selling pressure — with a peak below zero on 13-week Twiggs Money Flow. Failure of support at 8200 would signal another test of the 2008/2009 lows at 7000*. Breakout above 9000 is unlikely, but would signal an advance to 10000.
* Target calculation: 8000 – ( 9000 – 8000 ) = 7000
India’s Sensex is testing resistance at 17500. Breakout is likely and would signal an advance to 18500. Completion of a 13-week Twiggs Money Flow trough above zero would indicate strong buying pressure.
* Target calculation: 17.5 + ( 17.5 – 16.5 ) = 18.5
NSE Nifty shows a similar picture. 63-Day Twiggs Momentum rising to a new 2012 high would indicate a primary up-trend. Target for the breakout would be 5650*.
* Target calculation: 5350 + ( 5350 – 5050 ) = 5650
Singapore’s Straits Times Index broke through resistance at 3040. Recovery of 63-day Twiggs Momentum above zero suggests that the primary up-trend is intact. The calculated target is 3300* but the trend channel suggests resistance around 3200.
* Target calculation: 3000 + ( 3000 – 2700 ) = 3300
63-Day Twiggs Momentum continues to signal a strong primary down-trend? I thought it indicates an uptrend 🙂
Which index?