The TSX 60 continues to test support at 695/700. Failure would signal a correction to 680 and the rising trendline, while respect of support would indicate another test of 718. A 21-day Twiggs Money Flow peak below zero warns of medium-term selling pressure, but the long-term (13-week) indicator remains bullish and completion of a higher (21-day) trough, by recovery above zero, would reflect the return of buyers. Breakout above 718 would indicate a primary up-trend, while follow-through above the 2012 high at 725 would strengthen the signal.
* Target calculation: 725 + ( 725 – 640 ) = 810
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.