The FTSE 100 is advancing toward long-term resistance at 6750 on the monthly chart. Rising troughs on 13-week Twiggs Money Flow indicate long-term buying pressure.
* Target calculation: 6000 + ( 6000 – 5250 ) = 6750
Germany’s DAX is testing support at 7500. Bearish divergence on 13-week Twiggs Money Flow warns of selling pressure. Failure of 7500 would indicate a correction to test the rising trendline — and support at 7000.
* Target calculation: 7500 + ( 7500 – 7000 ) = 8000
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.