The FTSE 100 is testing resistance at 6850. Rising troughs above zero on 13-week Twiggs Money Flow signal buying pressure. Breakout would encounter further resistance at the 1999 high of 7000, so the calculated target of 7200 may be unrealistic. Reversal below 6700 is unlikely, but would test primary support at 6400.
* Target calculation: 6800 + ( 6800 – 6400 ) = 7200
The Euro has held up well despite rising tensions with Russia over the Ukraine. Reversal below $1.365 would warn of a test of primary support at $1.35. Bearish divergence on 13-week Twiggs Momentum suggests another correction. Breakout above $1.38 is less likely at present, but would signal an advance to $1.43*.
* Target calculation: 1.38 + ( 1.38 – 1.33 ) = 1.43
Dow Jones Euro Stoxx 50 retreated below 3100 and is likely to test primary support at 2920/2950. Breach of primary support would signal reversal to a down-trend.
* Target calculation: 3150 + ( 3150 – 2950 ) = 3350
Germany’s DAX is stronger, with rising 13-week Twiggs Money Flow suggesting another attempt at 10,000. But retreat below 9500 would test primary support at 9000.
DAX Volatility spiked above 20, but still reflects moderate risk.
The Euro encountered resistance at $1.38 and is again testing the new support level of $1.37 on the weekly chart. Bearish divergence on 13-week Twiggs Momentum warns of trend weakness, but only reversal below zero would indicate a primary trend reversal. Breach of primary support at $1.35 would signal a down-trend, while breakout above $1.38 would offer a target of $1.43*.
* Target calculation: 1.38 + ( 1.38 – 1.33 ) = 1.43
Germany’s DAX paints a similar picture to the Euro, with bearish divergence on 13-week Twiggs Money Flow suggesting sellers at 10,000. Retreat below 9600 would warn of another test of primary support at 9000.
DAX Volatility below 20, however, continues to suggest low risk typical of a bull market.
The strong advance for Sterling, over the last 8 months, is likely to encounter substantial resistance at the 2011 and 2009 highs of $1.68 and $1.70 respectively. Resistance also coincides with the target of $1.68* from the double bottom completed in September 2013. Breakout above $1.70 would offer a long-term target of $1.90, but reversal below $1.66 would test support at $1.62 in the short-term.
* Target calculation: 1.58 + ( 1.58 – 1.48 ) = 1.68
The FTSE 100 is likely to break out above resistance at 6850 after a higher trough on 13-week Twiggs Money Flow flagged a surge in buying pressure. Target for an advance is 7200* but expect committed sellers at the 1999 high of 7000. Retreat below primary support at 6400 is most unlikely, but would warn of a primary down-trend.
* Target calculation: 6800 + ( 6800 – 6400 ) = 7200
The FTSE 100 is headed for another test of 6850 after recovering above 6600. Completion of a higher trough above zero on 13-week Twiggs Money Flow would flag buying pressure. Failure of primary support at 6400 is unlikely, but would warn of a primary down-trend.
* Target calculation: 6800 + ( 6800 – 6400 ) = 7200
Germany’s DAX paints a similar picture to Dow Jones Euro Stoxx 50. Recovery above 9600 suggests an advance to 10600*. Breakout above 9800 would confirm. Completion of another 13-week Twiggs Money Flow trough high above zero would signal strong long-term buying pressure. Reversal below the latest rising trendline is unlikely, but would warn of a test of primary support at 9000.
* Target calculation: 9800 + ( 9800 – 9000 ) = 10600
DAX Volatility below 20 suggests a bull market.
Both the Euro and Dow Jones Euro Stoxx 50 Index are bullish.
Euro recovery above $1.37, the high of February 2013, suggests another advance. Breakout above $1.38 would confirm. Breach of the (secondary) rising trendline and declining Twiggs Momentum, however, warn of a weak trend. Reversal below $1.35 would test primary support at $1.33.
* Target calculation: 1.38 + ( 1.38 – 1.33 ) = 1.43
Dow Jones Euro Stoxx 50 is stronger, recovering above 3100 to indicate an advance to 3350*. Follow-through above 3180 would confirm. 13-Week Twiggs Momentum oscillating above zero reflects a healthy up-trend. Breach of the secondary trendline is unlikely, but would warn of another test of primary support at 2920.
* Target calculation: 3150 + ( 3150 – 2950 ) = 3350
The FTSE 100 found support at 6400 and the rising trendline. Recovery above 6600 would indicate another test of 6850. Rise of 13-week Twiggs Money Flow trough above 17% (the most recent high) would strengthen the signal. Failure of support at 6400 is unlikely, but would warn of a primary down-trend.
* Target calculation: 6700 + ( 6700 – 6400 ) = 7000
The Euro retraced from resistance at $1.39 but appears unlikely to penetrate the rising trendline (having recently signaled a primary advance). Breach would warn of of trend weakness, but recovery above $1.39 is more likely and would signal an advance to $1.46*.
* Target calculation: 1.37 + ( 1.37 – 1.28 ) = 1.46
The dragonfly candlestick on Germany’s DAX indicates strong support at 9000. Recovery above 9400 would suggest the correction is over and breakout above 9800 would signal a fresh advance with a target of 10600*. Reversal below 9000 is unlikely, but would warn of a correction to the primary trendline. Completion of another 13-week Twiggs Money Flow trough high above zero would signal strong long-term buying pressure.
* Target calculation: 9800 + ( 9800 – 9000 ) = 10600
Retreat of DAX Volatility below 20 suggests low risk indicative of a bull market.
Nymex Light Crude is headed for another test of resistance at $100/barrel. Respect of resistance is likely, given the primary down-trend, and would suggest another test of primary support at $92/barrel. Breach of primary support would offer a target of $84/barrel*. Recovery above $100 is unlikely and another 13-week Twiggs Momentum peak below zero would strengthen the bear signal. Brent crude is headed for another test of support at $104/barrel. Breach would join Nymex crude in a primary down-trend.
* Target calculation: 92 – ( 100 – 92 ) = 84
