The TSX Composite is headed for another test of resistance at 12500. Breakout would signal an advance, offering a target of 13250*. Rising 63-day Twiggs Momentum suggests a primary up-trend. Reversal below 11750 is unlikely but would test primary support at 11200.
* Target calculation: 12500 + ( 12500 – 11750 ) = 13250
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.
I’m quite often wrong with my opinion, but technically to me on the daily chart for the TSX, last weeks candle broken down looks distinctly like a very steep bear flag.
Also having the advantage of the two trading days this week, it looks like price has become very flaccid just below 23.6 resistance level. I’m shorting it here with a very tight stop.