bullish divergence Archives - Page 2 of 2

October 10, 2011

India Sensex and Singapore STI

Bullish divergence on India’s SENSEX 13-week Twiggs Money Flow suggests a double bottom reversal. Breakout above 17200 would confirm, signaling a bear market rally with a target of 18600*. Note that the primary down-trend would remain downward.

SENSEX

* Target calculation: 17200 + ( 17200 – 15800 ) = 18600

Singapore’s Straits Times Index recovered above short-term resistance at 2650 after a sharp fall over several weeks. We could see a bear market rally to 2900, but the primary trend, as signaled by declining 63-day Twiggs Momentum, remains in a strong down-trend.

Straits Times Index

* Target calculation: 2700 – ( 2900 – 2700 ) = 2500

October 10, 2011

NASDAQ bullish divergence

NASDAQ 100 index respected primary support at 2040 before rallying strongly on the weekly chart. Bullish divergence on 13-week Twiggs Money Flow indicates buying pressure. Breakout above 2340 would complete a double bottom. Reversal below 2000 is less likely, but would warn of a decline to 1700*. A word of caution: we are in a highly volatile market — do not act on signals without confirmation from other indexes.

NASDAQ 100 Index

* Target calculation: 2000 – ( 2300 – 2000 ) = 1700

August 23, 2011

NZ bucks trend

New Zealand is one of the few markets that is bucking the trend — its agriculture-based economy fairly insulated from the global down-turn. ENZL, the MSCI New Zealand ETF, recovered above its former primary support level at 31.50 after strong bullish divergence on 13-week Twiggs Money Flow. While technically still a bear market, retracement that respects the new support level of 31.50 would confirm a test of 34.

iShares MSCI New Zealand Investable Market Index Fund (ENZL)

August 22, 2011

NZ50 bullish divergence

Bullish divergence on 21-day Twiggs Money Flow on the NZ50 Index signals buying support. Breakout above 3300 is possible, but the primary down-trend is unlikely to change, given the state of global markets.

NZ50 Index

* Target calculation: 3100 – ( 3300 – 3100 ) = 2900