Nikkei, ASX find support but India & China weaken
By Colin Twiggs
June 4th, 2013 3:30 a.m. EDT (5:30 p.m. AET)
Dow Jones Japan index found support at its long-term rising trendline. Follow-through above 77 would indicate the correction is over, suggesting an advance to 100*. Breach of the trendline, however would warn that the primary trend is weakening.
* Target calculation: 85 + ( 85 - 70 ) = 100
The ASX 200 also encountered buying pressure, with a hammer candlestick at the primary support level of 4900. Recovery above 5000 would indicate the correction is over, but breach remains as likely and would confirm the primary down-trend suggested by bearish divergence on 21-day Twiggs Money Flow.
India's Sensex is testing medium-term support at 19600. Breach would signal a correction to test primary support at 18000. Bearish divergence on 21-day Twiggs Money Flow warns of selling pressure. Recovery above 20000 is unlikely, but would suggest an advance to 22000*.
* Target calculation: 20 + ( 20 - 18 ) = 22
Dow Jones Shanghai Index broke its rising trendline, warning that the rally is running out of steam. Failure of support at 294 would signal another test of primary support at 275. Respect of support is unlikely, but would indicate a test of primary resistance at 314.
The overall outlook for Asia remains bearish apart from Japan.
I had applied for a job [at Imperial Chemical Industries] in 1948 and was called for a personal interview. However I failed to get selected. Many years later, I succeeded in finding out why I had been rejected. The remarks written by the selectors on my application were: "This woman is headstrong, obstinate and dangerously self-opinionated!"
~ Margaret Thatcher, quoted by K. Sathyanarayana in The Power of Humor at the Workplace (2007)