The TSX Composite monthly chart shows the market ranging between 11000 and 12800. Oscillation of 13-week Twiggs Money Flow above zero reflects buying support at 11000. Downward breakout is unlikely, while recovery above 12800 would offer a target of 14000*.
* Target calculation: 12500 + ( 12500 – 11000 ) = 14000
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.