Germany’s DAX found support at 7200. Respect would indicate another attempt at long-term resistance at 7500/7600. Rising troughs above zero on 13-week Twiggs Money Flow indicate strong buying pressure. Breakout would signal a long-term advance to 8400*.
* Target calculation: 7200 + ( 7200 – 6000 ) = 8400
Madrid General Index similarly found support at 770. A 63-day Twiggs Momentum trough above zero would indicate a primary up-trend. Respect of support would indicate a test of resistance at 900, while failure would retrace to 720.
France’s CAC-40 retraced to 3350. Respect would mean another test of 3600, while breach of the rising trendline would warn of a down-swing to test primary support at 2900. A 63-day Twiggs Momentum trough above zero would suggest a primary up-trend. Breakout above 3600 would confirm, offering a target of the 2011 high at 4100.
* Target calculation: 3600 + ( 3600 – 3000 ) = 4200
A daily chart of the FTSE 100 shows medium-term support at 5740. Follow-through above 5880 would indicate an attempt at primary resistance at 6000/6100. Rising 21-day Twiggs Money Flow troughs above zero indicate buying pressure, but the last (marginal) breakout above 5880 warns of strong resistance at 6000. Breakout above 6100 would offer a long-term target of 6750*.
* Target calculation: 6000 + ( 6000 – 5250 ) = 6750
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.