Hong Kong’s Hang Seng Index retreated below 23000. Breach of the rising trendline warns of a correction. Respect of support at 22000 would confirm a strong primary up-trend, while breach of 21000 — and the primary trendline — would warn of a reversal. Another 13-week Twiggs Money Flow trough above zero would also confirm the primary up-trend. Recovery above 24000 is unlikely at present but would test the 2010 high of 25000.
The Shanghai Composite Index respected primary resistance at 2500. Breach of the secondary trendline warns of a correction. A higher trough — above 2000 — would establish a solid foundation for a primary advance. As would a 63-day Twiggs Momentum trough above zero.
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.