The TSX Composite retreat below 12200 on the daily chart indicates another test of medium-term support at 12000. The rally remains intact as long as support holds. Failure would re-test primary support at 11750/11800, while recovery above 12200 would test resistance at 12500. Rising 63-day Twiggs Momentum suggests a primary up-trend. Breakout would signal an advance to 13250*.
* Target calculation: 12500 + ( 12500 – 11750 ) = 13250
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.