The hourly chart of the ASX 200 formed a small descending triangle since Friday, testing support at 4320. Descending peaks indicate selling pressure. Downward breakout would warn of another test of medium-term support at 4260. Upward breakout is unlikely but would indicate an advance to 4400.
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.