Tag: ASX 200 Index

The ASX 200 broke through long-term resistance at 4450, signaling a primary up-trend with an initial target of 4900*. Rising troughs on 13-week Twiggs Money Flow indicate buying pressure. Retracement to test the new support level remains likely, however, in the next few weeks.

* Target calculation: 4450 + ( 4450 – 4000 ) = 4900

The hourly chart reflects buying pressure, with initial retracement to 4475 after the breakout, instead of the expected 4450. Follow-through above 4500 confirms a strong breakout. At some point in the medium term we are still likely to see a test of the 4450 support level. Respect would confirm a healthy primary up-trend.

 

The ASX 200 rallied off support at 4350 and is testing long-term resistance at 4450. Rising troughs on 13-week Twiggs Money Flow indicate buying pressure. Breakout above 4450 would signal a primary up-trend, with an initial target of 4900*. Reversal below the rising trendline remains as likely, because of weakness in the US and Asia, and would suggest another correction.

* Target calculation: 4450 + ( 4450 – 4000 ) = 4900

Last week’s short candle on strong volume indicates the ASX 200 is running into resistance at 4400/4450. Reversal below the rising trendline would suggest another correction.

The hourly chart broke through its rising trendline, and first line of support at 4395/4400, on Monday morning. Retracement that respects resistance at 4400 would  warn of a down-swing to 4250.

Short bars on the S&P 500 retracement are a bullish sign, respect of short-term support at 1450 would suggest a strong advance.

The ASX 200 is strengthening in sympathy, despite poor performance of Chinese markets.  Breakout above 4400 would strengthen the primary up-trend signal, from rising 63-day Twiggs Momentum. Follow-through above 4450 would confirm.

* Target calculation: 4450 + ( 4450 – 4000 ) = 4900

The hourly chart of the ASX 200 formed a small descending triangle since  Friday, testing support at 4320. Descending peaks indicate selling pressure. Downward breakout would warn of another test of medium-term support at 4260. Upward breakout is unlikely but would indicate an advance to 4400.

The weekly chart shows the ASX 200 finding support at 4260. Recovery of 63-day Twiggs Momentum above zero suggests a primary up-trend. Breakout above 4400 would confirm the signal. Failure of support at 4260, however, would warn of another test of primary support at 4000.

The hourly chart shows Friday’s jump above resistance at 4320 followed by retracement to test the new support level. A lower high on Monday followed by another test of 4320 shows buyers lack enthusiasm. Failure of support would warn of another test of medium-term support at 4260.

The ASX is feeling the effect of slowing manufacturing in China, with falling iron ore prices causing weakness in RIO, FMG and BHP. Rio Tinto is testing support at $50, while steeply falling 13-week Twiggs Money Flow warns of strong selling pressure.

Impact on the ASX 200 index is more diluted but 13-week Twiggs Money Flow below zero again warns of selling pressure. Breakout above 4400 is unlikely in the present climate.

The ASX 200 met resistance at 4400. Short retracement or narrow consolidation would be a bullish sign, suggesting a breakout. Oscillation of 63-day Twiggs Momentum around the zero line, however, would suggest a ranging market, with further tests of primary support at 4000.

The Daily chart shows the ASX 200 testing the upper border of its trend channel. Bearish divergence on 21-day Twiggs Money Flow warns of medium-term selling pressure; reversal below zero would strengthen the signal. Failure of initial support at 4320 would indicate a swing to the lower trend channel.

The ASX 200 is retracing after a healthy rally. Reversal of 21-day Twiggs Money Flow below zero indicates short-term selling pressure. Expect a test of the lower trend channel.

The ASX 200 broke short-term resistance at 4290, indicating an advance to 4360. Retracement that respects support at 4290/4300 would confirm breakout from the trend channel and an advance to 4450. Rising 21-day Twiggs Money flow indicates medium-term buying pressure. In the longer term, breakout above 4450 would signal a primary advance to the 2011 high at 4950.

* Target calculation: 4290 + ( 4290 – 4220 ) = 4360