Sometimes monthly charts provide a clearer view of market direction by eliminating short-term noise.
India’s Sensex displays a primary advance, since breaking resistance at 21000, offering a long-term target of 26000*. Rising 13-week Twiggs Money Flow troughs above zero indicate strong buying pressure. Correction to test the rising trendline and support at 22000 should not be ruled out, but the primary trend is upward.
* Target calculation: 21000 + ( 21000 – 16000 ) = 26000
The Shanghai Composite Index continues its gradual descent to a carefully managed soft-landing. Declining 13-week Twiggs Money Flow indicates selling pressure. Breach of primary support at 1980 would offer a target of 1750*.
* Long-term target calculation: 2000 – ( 2250 – 2000 ) = 1750
Japan’s Nikkei 225 is testing primary support at 14000, while a large bearish divergence on 13-week Twiggs Money Flow warns of selling pressure. Breach of 14000 would confirm a primary down-trend. Recovery above 15000 and the descending trendline, however, would indicate another test of 16000*.
* Target calculation: 15000 + ( 15000 – 14000 ) = 16000