Despite a broad sell-off across global markets, the ASX 200 has stood firm, rallying into the close for the last two days. Low volumes indicate an absence of sellers, but expect strong resistance at 5450/5460. Breach of the rising trendline would warn of another test of support at 5300 and possibly a stronger correction. Breakout above 5450/5460 remains as likely and would signal an advance to 5600*. Primary support at 5050 does not at this stage appear threatened and the index remains in an up-trend.
* Target calculation: 5450 + ( 5450 – 5300 ) = 5600
A rising Aussie Dollar may be contributing to ASX resilience. Performance over the last quarter looks a lot stronger if measured in US Dollars or Japanese Yen. Breakout of the Aussie Dollar above $0.93 suggests a rally to $0.95*.
* Target calculation: 0.93 + ( 0.93 – 0.91 ) = 0.95
The weekly chart presents a more complete picture. Breach of the descending trendline and recovery of 13-week Twiggs Momentum above zero (after a strong bullish divergence) both suggest that a bottom is forming, but we are a long way from commencing an up-trend.
Hi Colin,
your Momentum Indicator seems to be very interesting.
Is it only usable for very long timeframes as weekly?
For me it could be helpful for forex, but preferably for e.g. 15min TF.
Is it reasonable for this purpose?
How can I get access to it?
I look forward to your answer.
Regards,
Hans
Hans, Twiggs Money Flow is a proprietary indicator I developed several years ago to provide a more consistent measure than classic Momentum. I have not tested it on time frames as short as as 15 minutes. You are welcome to try a 30-day free trial of Incredible Charts, but this does not offer back-testing.
Regards, Colin