The weekly chart shows the ASX 200 finding support at 4260. Recovery of 63-day Twiggs Momentum above zero suggests a primary up-trend. Breakout above 4400 would confirm the signal. Failure of support at 4260, however, would warn of another test of primary support at 4000.
The hourly chart shows Friday’s jump above resistance at 4320 followed by retracement to test the new support level. A lower high on Monday followed by another test of 4320 shows buyers lack enthusiasm. Failure of support would warn of another test of medium-term support at 4260.
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.