India’s Sensex is headed for a test of support at 19000. Breach of the secondary trendline already warns of a correction to the primary trendline around 18000. Bearish divergence on 13-week Twiggs Money Flow, followed by reversal below zero, indicates strong selling pressure.
* Target calculation: 19 + ( 19 – 18 ) = 20
Singapore’s Straits Times Index is consolidating in a narrow range below 3300 — a bullish sign — and 21-day Twiggs Money Flow oscillating above zero indicates buying pressure. Breakout above 3300 would signal an advance to the 2007 high at 3900*. Reversal below 3250 is unlikely but would warn of a correction.
* Target calculation: 3300 + ( 3300 – 2700 ) = 3900
Japan’s Nikkei 225 Index is again testing its 2010 high of 11500. Reversal below 11000 would suggest a correction to 10000, while breakout would offer an initial target of 12000*.
* Target calculation: 10000 + ( 10000 – 8000 ) = 12000
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.