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 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.