The ASX 200 weakened towards the close and is testing medium-term support at 5000. Breakout below 4980 would warn of a correction. Declining 21-day Twiggs Money Flow, indicating medium-term selling pressure, makes this likely. The index is in a strong primary up-trend and a 5 or 10 percent correction would not alter this. It is merely a case of one step back then two steps forward.
* Target calculation: 5000 + ( 5000 – 4500 ) = 5500
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.
Twiggs, give us downside targets as well . Displaying only upside targets reflects bias thats not seemingly supported by short-term trend line and momentum. Anything can happen . Thanks
Good suggestion. And here I thought I was a perma-bear.
If 4950’ish doesnt hold the looks like next stop will be 4900+/-25pts, after that 4750.
Depends on Shangahi (strong today) and US markets.
I suspect a 3% drop on SPX might take XJO to mid/high 4800’s.