The Shanghai Composite Index is consolidating between 2000 and 2150. Descending 13-week Twiggs Money Flow warns of long-term selling pressure. Respect of resistance at 2150 is likely and breakout below 2000 would signal a decline to 1800*.
* Target calculation: 2150 – ( 2500 – 2150 ) = 1800
Shenzhen Composite Index is testing primary support at 800. Again, descending 13-week Twiggs Money Flow indicates long-term selling pressure. Resistance at 900 is likely to be respected, while breakout below primary support would offer a target of 600*.
* Target calculation: 800 – (1000 – 800 ) = 600
Japan’s Nikkei 225 is testing support at 8650/8700. Respect would indicate a rally to 9200, while failure would complete a double top reversal, signaling a test of primary support at 8200. Rising 13-week Twiggs Money Flow suggests medium-term buying pressure but the long-term picture remains negative. Breach of 8200 would signal a primary down-trend with an initial target of 7200*.
* Target calculation: 8200 – ( 9200 – 8200 ) = 7200
South Korea’s Seoul Composite Index is consolidating between 1950 and 2000. Rising 13-week Twiggs Money Flow indicates buying pressure. Breakout above 2000 is likely, followed by a test of the year’s high at 2050.
* Target calculation: 2050 + ( 2050 – 1900 ) = 2200
India’s Sensex is retracing to test the new support level at 18500. Respect would signal a strong up-trend, but even retracement to 18000 would not be cause for concern. Rising troughs above zero on 13-week Twiggs Money Flow indicate buying pressure. Follow-through above 19000 would signal an advance to 21000*.
* Target calculation: 18.5 + ( 18.5 – 16.0 ) = 21.0
Singapore’s Straits Times Index retreated from resistance at 3100. Expect another test of support at 3000; confirmed if short-term support at 3050 is breached. Recovery above 3100 would confirm an advance to 3300 — as would a 63-day Twiggs Momentum trough above zero.
* Target calculation: 3000 + ( 3000 – 2700 ) = 3300
Twiggs Money Flow bullish divergence on Shanghai and Shenzhen.
What time frame? 21 days? I don’t see this on 13 week TMF.
I was wrong about Shenzhen so ignore that. But there is a divergence on 13week TMF on Shanghai. Looking at pivot lows of December and October, you can see a higher low on the indicator for Oct but a lower low in price for Oct. Also of lesser significance there are the two ‘mini’ lows in October… shows a slightly lower low in price but a slightly higher low in the indicator. These observations are matched with RSI and MACD lines both on daily for October double lows, and on weekly for Dec and Oct lows. Price (so far) looks to be confirming these observations with the first sessions after holidays.
In addition to this we see a divergence between the two indices….Shanghai’s lower low in Oct is not matched with Shenzhen which is tracking a higher low. The two indices do not agree so potential for prevailing price direction to reverse.
In the chart of India’s Senex, if you had drawn an up trend line and projected it through the lows of Jan and July and a parallel through the tops you would have shown it to be now at a top of a much lower gradient trend than your green line and quite like the Singapore chart.
Good point. So reversal at 19000 would indicate respect of the upper trend channel.