Italy’s MIB index retreated from resistance at 18000 to re-test the key support level of 17000. Respect would confirm the primary up-trend with an initial target of 19000*. Rising 13-week Twiggs Money Flow indicates long-term buying pressure.
* Target calculation: 17000 + ( 17000 – 15000 ) = 19000
Germany’s DAX primary advance is approaching the 2007 high at 8000/8200. Resistance is evident, with shorter candles over the last two months and 13-week Twiggs Money Flow declining from its 2012 peak. Expect a correction, but long-term buying pressure (signaled by rising 13-week Twiggs Money Flow) should see continuation of the primary up-trend.
* Target calculation: 7500 + ( 7500 – 7000 ) = 8000
The FTSE 100 broke through resistance at 6000 and is advancing toward its 2007 high of 6750*. Rising 13-week Twiggs Money Flow indicates long-term buying pressure, while the recent spike should see strong gains in February.
* Target calculation: 6000 + ( 6000 – 5250 ) = 6750
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.