Australia: ASX 200 threatens breakout

The ASX 200 rallied off support at 4350 and is testing long-term resistance at 4450. Rising troughs on 13-week Twiggs Money Flow indicate buying pressure. Breakout above 4450 would signal a primary up-trend, with an initial target of 4900*. Reversal below the rising trendline remains as likely, because of weakness in the US and Asia, and would suggest another correction.

ASX 200 Index

* Target calculation: 4450 + ( 4450 – 4000 ) = 4900