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Asia: China & Japan weak, India & HK bullish

By Colin Twiggs
October 29th, 2012 11:00 p.m. ET (2:00 p.m. AET)

These extracts from my trading diary are for educational purposes. Any advice contained therein is provided for the general information of readers and does not have regard to any particular person's investment objectives, financial situation or needs and must not be construed as advice to buy, sell, hold or otherwise deal with any securities or other investments. Accordingly, no reader should act on the basis of any information contained therein without first having consulted a suitably qualified financial advisor. Full terms and conditions can be found at Terms of Use.


China's Shanghai Composite Index respected resistance at 2150 and the descending trendline, indicating another down-swing. Breach of support at 2000 would confirm. Reversal of 63-day Twiggs Momentum below its rising trendline would strengthen the bear signal.

Shanghai Composite Index

* Target calculation: 2150 - ( 2500 - 2150 ) = 1800

Rising 13-week Twiggs Money Flow indicates buying pressure on Hong Kong's Hang Seng Index. Breakout above 22000 would indicate a primary advance with a long-term target of 26000*.

Hang Seng Index

* Target calculation: 22 + ( 22 - 18 ) = 26

India's Sensex continues to test its new support level at 18500. Recovery above 19000 would confirm the primary up-trend, while breach of support at 18000 would warn of a test of primary support at 16500. Rising 63-day Twiggs Momentum favors a primary advance.

Sensex

* Target calculation: 18.5 + ( 18.5 - 16.0 ) = 21.0

Singapore's Straits Times index is in a weak up-trend, consolidating below 3100. Breach of support at 3000 would test the lower edge of the trend channel. Reversal of 63-day Twiggs Momentum below zero would suggest further consolidation, while a fall below -5% would indicate a primary down-trend.

Straits Times Index

Japan's Nikkei 225 is testing resistance at 9200. Breakout would indicate a rally to 10200. Oscillation of 63-day Twiggs Momentum below zero, however, continues to indicate a down-trend. Respect of 9200 would indicate another test of primary support at 8500.

Nikkei 225

* Target calculation: 9200 + ( 9200 - 8200 ) = 10200

South Korea's Seoul Composite index is testing support at 1900. Breach would warn of a correction to primary support at 1750. Reversal of 63-day Twiggs Momentum below zero would strengthen the bear signal.

Seoul Composite Index


Economists simply don't know what science means. I am quite disgusted with all of this rubbish. —I am more and more of the opinion that Keynes is a scientific charlatan, and his followers not even that.

~ German-born economist Oskar Morgenstern

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