The TSX 60 continues in a rising broadening wedge on the daily chart. Thomas Bulkowski warns these are bearish formations, ending with a downward breakout almost 3 out of 4 times. That would threaten primary support at 640 and a decline to 600*. Bearish divergence on 21-day Twiggs Money Flow warns of short-term selling pressure. Respect of support at 640, however, would suggest a rally to 720.
* Target calculation: 640 – ( 680 – 640 ) = 600
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.