India’s Sensex is likely to retrace to test the new support level after breaking resistance at 24000. Breach of support would warn of a correction back to 23000, with 21-day Twiggs Money Flow (respecting the zero line from below) continuing to warn of medium-term selling pressure. Long term, the primary trend is upward, with 13-week Twiggs Money Flow troughs above zero signaling buying pressure. Respect of support at 24000 would signal another test of 25000.
* Target calculation: 21000 + ( 21000 – 16000 ) = 26000
Singapore’s Straits Times Index is testing resistance at 3260. Several long tails on the weekly chart, and recovery of 13-Week Twiggs Money Flow above zero, suggest medium-term buying pressure. Follow through above 3300 would signal a primary advance to 3600*. Respect of resistance is unlikely, but reversal below 3200 would warn of another test of primary support at 3000.
* Target calculation: 3300 + ( 3300 – 3000 ) = 3600