The ASX 200 rallied on news of EU progress and is headed for resistance at 4350. Breakout would offer a target of 4850* but weakness in China makes this unlikely.
* Target calculation: 4350 + ( 4350 – 3850 ) = 4850
On the long-term (quarterly) chart it is clear that we are still in bear territory. Only breakout above 5000 would reverse the trend.
The ASX 200 index is once again testing resistance at 4350. Rising 21-day Twiggs Money Flow indicates medium-term buying pressure. Breakout would signal a primary advance to 4700*. Respect of resistance is less likely, but would suggest another test of primary support at 3850.
* Target calculation: 4350 + (4350 – 4000 ) = 4700
The All Ordinaries is similarly testing resistance at 4400, while rising 13-week Twiggs Money Flow indicates long-term buying pressure. Breakout would offer a target of 4800*.
* Target calculation: 4400 + ( 4400 – 4000 ) = 4800
The ASX 200 index is testing medium-term support at 4150. Bearish divergence on 21-day Twiggs Money Flow warns of selling pressure. Failure of support would test the primary level at 3850.
* Target calculation: 3900 – ( 4300 − 3900 ) = 3500
A weekly chart of the All Ords shows a primary down-trend. Failure of support at 4200 would test 3900. Completion of a peak below zero on 63-day Twiggs Momentum would suggest another decline.
* Target calculation: 4000 – ( 4500 − 4000 ) = 3500
The ASX 200 encountered selling pressure at 4350, as indicated by the tall shadow (or “wick”) on Monday’s candle. Bearish divergence on 21-day Twiggs Money Flow also indicates medium-term selling pressure. Failure of support at 4150 would signal another test of primary support at 3850. Upward breakout is less likely but would offer a target of 4850*.
* Target calculation: 4350 + ( 4350 – 3850 ) = 4850
The ASX 200 broke out above its descending trendline — warning that the down-trend was ending — but ran into selling pressure. Bearish divergence on 21-day Twiggs Money Flow confirms the tall shadow on Friday’s candle. Respect of support at 4100 would suggest a primary up-trend, while failure would re-test primary support at 3850.
* Target calculation: 4300 + ( 4300 – 3900 ) = 4700
Support levels are clearer on the weekly chart.
Dow Jones Industrial Average broke its declining trendline Monday, surging strongly, but light volume indicates hesitancy on the part of buyers.
* Target calculation: 11000 – ( 12000 – 11000 ) = 10000
Asian stocks reacted with enthusiasm but Shanghai, after gapping up at the open, fell sharply, giving up most of its gains. The ASX 200 response was muted, with a narrow range and low volume indicating hesitancy from buyers. Reversal below Monday’s low of 4150 would signal another test of 3850. Failure of support would offer a target of 3600*.
* Target calculation: 3900 – ( 4200 – 3900 ) = 3600
