Tag: Seoul Composite Index

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Sellers still dominate Japan, South Korea

Japan’s Nikkei 225 is headed for a test of resistance at 9000, but 13-week Twiggs Money Flow trends downwards — indicating that sellers are dominant. Respect of resistance would warn of another test of primary support at 8000.

Nikkei 225 Index

South Korea’s Seoul Composite index retreated from resistance at 1960. Again we have down-trending 13-week Twiggs Money Flow, warning that sellers dominate the market. Breakout above 1960 is unlikely, while respect would suggest another test of primary support at 1750.

Seoul Composite Index

* Target calculation: 1950 + ( 1950 – 1750 ) = 2150

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Singapore & Korea

Singapore’s Straits Times Index is establishing a base between 2600 and 2900. Rising 63-day Twiggs Momentum warns that the down-trend is weakening. Breakout above 2900 would signal a primary advance to 3200*.

Straits Times Index

* Target calculation: 2900 + ( 2900 – 2600 ) = 3200

South Korea’s Seoul Composite Index is headed for a test of resistance at 1920. Breakout would signal a primary advance to 2150*, but bearish divergence warns of medium-term selling pressure. It advisable to wait for retracement to respect the new support level, confirming the breakout.

Seoul Composite Index

* Target calculation: 1900 + ( 1900 – 1650 ) = 2150

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Asia: Shanghai weakens but India displays support

China’s Shanghai Composite index has been edging lower since breaking support at 2400. 63-Day Twiggs Momentum, declining below zero, confirms a primary down-trend. Expect a test of the 2008 low at 1700 in the months ahead.

Shanghai Composite Index

* Target calculation: 2400 – ( 3200 – 2400 ) = 1600

India’s Sensex Index broke support at 16000 but then retraced to test the new resistance level. An encouraging bullish divergence on 13-week Twiggs Money Flow shows buying pressure. Breakout above 16000 would indicate a rally to 18000. Respect of resistance, however, would confirm the down-swing to 14000*.


BSE Sensex Index

* Target calculation: 16 – ( 18 – 16 ) = 14

Singapore’s Straits Times Index follows a similar course to India. Recovery above 2900 would signal a (primary trend) reversal.

Singapore Straits Times Index


Hong Kong’s Hang Seng Index faces similar resistance at 20000. Respect would indicate another test of 16000, while breakout would signal a reversal.

Hong Kong Hang Seng Index


The weekly chart shows Japan’s Nikkei 225 index on a similar path to Shanghai — headed for a test of its 2008/9 lows. Failure of medium-term support at 8200 would strengthen the signal. 13-Week Twiggs Money Flow below zero warns of selling pressure.

Nikkei 225 Index

* Target calculation: 9 – ( 11 – 9 ) = 7

South Korea’s Seoul Composite index is testing resistance at 1920 but bearish divergence on 13-week Twiggs Money Flow warns of selling pressure. Reversal below 1800 would suggest another test of support at 1650. Upward breakout is unlikely but would indicate a (primary trend) reversal.

Seoul Composite Index

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Asia rallies

Asia rallied Monday on encouraging signs from Europe, with the Nikkei 225 testing 8300, the Seoul Composite (KOSPI) jumping to 1815, and Hang Seng above 18000. But a look at the quarterly chart of the Nikkei shows a long-term, bearish divergence on 63-day Twiggs Momentum, while the index is headed for a test of key support at 7000/7500. Unless we see a break above the descending trendline, the trend remains downward.

Nikkei 225 Index

South Korea’s Seoul Composite index is headed for another test of 1650 according to the weekly chart. 63-Day Twiggs Momentum oscillating well below zero indicates a strong primary down-trend. Failure of support would offer a target of 1350*.

KOSPI Index

* Target calculation: 1650 – ( 1950 – 1650 ) = 1350

Hong Kong’s Hang Seng index recovered above 18000 Monday but the long-term trend remains downward. Steeply descending 63-day Twiggs Momentum warns of a strong primary down-trend.

Hang Seng Index

* Target calculation: 16 – ( 20 – 16 ) = 12

The Shanghai Composite index did not share the enthusiasm of other Asian markets, testing support at 2375.  Reversal of 13-week Twiggs Money Flow below zero warns of rising selling pressure. Failure of support at 2300 would offer a target of 2050*.

Shanghai Composite Index

* Target calculation: 2300 – ( 2550 – 2300 ) = 2050

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Asian markets

The Shanghai Composite Index reflects China’s controlled slow-down, edging lower with intermittent bear market rallies. The index is currently testing the descending (secondary) trendline at 2500. Penetration would offer a target of 2650 but would not indicate that the primary down-trend is over. Failure of support at 2300/2350 remains more likely and would offer a target of 2000.

Shanghai Composite Index

* Target calculation: 2300 – ( 2600 – 2300 ) = 2000

HongKong’s Hang Seng Index is headed for a test of the (primary) descending trendline at 21000; breakout above 20000 would confirm. The primary trend remains downward, however, and respect of the trendline would suggest another test of 16000.

Hang Seng Index

Japan’s Nikkei 225 Index is ranging between 8400 and 9100. Breakout would indicate future trend direction.

Nikkei 225 Index

* Target calculation: 8400 – ( 9000 – 8400 ) = 7800

South Korea’s Seoul Composite Index continues to reflect buying pressure on 13-week Twiggs Money Flow. Follow-through above recent highs would indicate a strong bear rally, but the primary trend remains downward.

Seoul Composite Index

* Target calculation: 1900 + ( 1900 – 1800 ) = 2000

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Japan & South Korea buying pressure

Japan’s Nikkei 225 Index retreated Tuesday, but has completed a small double bottom, indicating a test of 9000. Bullish divergence on 13-week Twiggs Money Flow flags strong buying pressure. Breakout above 9000 would indicate an advance to 10000.

Nikkei 225 Index

* Target calculation: 9000 + ( 9000 – 8400 ) = 9600

The Seoul Composite Index shows a weaker divergence on 13-week Twiggs Money Flow. Breakout above 1900 would offer a target of 2150, while respect would re-test primary support at 1650.

Seoul Composite Index

* Target calculation: 1900 + ( 1900 – 1650 ) = 2150

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China and South Korea

The Shanghai Composite Index is testing support at the 2010 low of 2350. 13-Week Twiggs Money Flow below zero warns of selling pressure. Failure of support is likely and would offer a long-term target of 1800*.

Shanghai Composite Index

* Target calculation: 2400 – ( 3000 – 2400 ) = 1800

Hang Seng Index rallied off support at 16000 and 13-week Twiggs Money Flow above zero indicates short/medium-term buying pressure. Expect a rally to test 19000, but the primary trend remains down and respect of resistance would indicate another test of 16000*.

Hang Seng Index

* Target calculation: 19 – ( 22 – 19 ) = 16

South Korea’s Seoul Composite Index is headed for a test of its upper trend channel. Bullish divergence on 13-week Twiggs Money Flow suggests a bear market rally. Expect another test of 1900. But the primary trend remains down and failure of support at 1650 would warn of a decline to 1500*.

Seoul Composite Index

* Target calculation: 1700 – ( 1900 – 1700 ) = 1500

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