Japan’s Nikkei 225 is testing primary support at 14000, while a large bearish divergence on 13-week Twiggs Money Flow warns of long-term selling pressure. Follow-through below 14000 would confirm a primary down-trend. Recovery above 15000 and the descending trendline is unlikely, but would indicate an advance to 16000*.
* Target calculation: 15000 + ( 15000 – 14000 ) = 16000
Bullish divergence (13-week Twiggs Money Flow) on the Shanghai Composite Index signals medium-term buying pressure. Breakout above 2180 would complete a double bottom reversal. Breach of primary support at 1980 is unlikely, but would offer a target of 1750*.
* Long-term target calculation: 2000 – ( 2250 – 2000 ) = 1750
Indian exchanges were closed Monday. A long-term view of the Sensex displays a healthy up-trend, with 13-week Twiggs Money Flow trough above zero indicating buying pressure. Target for the latest advance is 23000*, but reversal below 22000 would warn of a correction to test the new support level at 21000.
* Target calculation: 21500 + ( 21500 – 20000 ) = 23000