The ASX 200 is testing resistance at 4600. Breakout is likely — following bullishness in Europe and Asia — and would signal an advance to 4900*. The 63-day Twiggs Momentum trough above zero suggests a strong primary up-trend. Respect of resistance is not expected but would retrace to test the rising trendline at 4450.
* Target calculation: 4600 + ( 4600 – 4300 ) = 4900
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.