India’s Sensex retraced after encountering sellers at 22000, but Monday’s engulfing candle indicates support. Breakout above 22000 would signal an advance to 23000*. Reversal below 21300 is unlikely, but would warn of another correction. Momentum troughs above zero suggest a healthy primary up-trend.
* Target calculation: 21500 + ( 21500 – 20000 ) = 23000
Japan’s Nikkei 225 is headed for another test of 14000 after a false break above 15000. Breach of support would signal a primary down-trend. Bearish divergence on 13-week Twiggs Money Flow continues to warn of selling pressure; reversal below zero would also indicate a primary down-trend.
* Target calculation: 14000 – ( 15000 – 14000 ) = 13000
China’s Shanghai Composite Index found support at 1990/2000. Follow-through above the rising trendline would indicate another bear rally. Bullish divergence on 21-day Twiggs Money Flow suggests medium-term buying pressure. Reversal below 1990 is unlikely at present, but would warn of a decline to 1850.
* Target calculation: 2000 – ( 2150 – 2000 ) = 1850