The FTSE 100 is testing medium-term support at 5700. Respect would test resistance at 6000/6100*, while failure would warn of a correction. A 63-day Twiggs Momentum trough above zero would strengthen the bull signal. Breakout above 6100 is still some way off but would offer a long-term target of 6750.
* Target calculation: 5900 + ( 5900 – 5700 ) = 6100
Dow Jones Europe Index is consolidating below 250 after breaking resistance at 240. Follow-through above 250 would signal an advance to the 2012 high of 265. Bullish divergence on 63-day Twiggs Momentum suggests a primary up-trend, but this would require a trough above zero — or breakout above 265 on the weekly chart — to confirm.
* Target calculation: 260 + ( 260 – 210 ) = 310
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.