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ASX 200: Three targets converge

By Colin Twiggs
July 30th, 2014 4:00 a.m. EDT (6:00 p.m. AEST)

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.


The ASX 200 broke resistance at 5590/5600 and is set for a further advance. Recovery of 13-week Twiggs Money Flow above the descending trendline would confirm long-term buying pressure. Convergence of targets, calculated for different time frames, at 5750/5850 also strengthens the signal:

  • 5250 + (5250 - 4650) = 5850
  • 5450 + (5450 - 5050) = 5850
  • 5550 + (5550 - 5350) = 5750

Reversal below 5540 is most unlikely, but would warn of a correction.

ASX 200

ASX 200 VIX near 10 continues to indicate a bull market.

ASX 200

The Australian Dollar is consolidating in a narrow rangee below resistance at $0.94, suggesting an upward breakout. Only concerted action by the RBA would be likely to counter this. Follow-through above $0.945 would confirm a rally to $0.97. Reversal below $0.92 is most unlikely, but would warn of a test of primary support at $0.8650/$0.87.

AUDUSD

In practice we always base our preparations against an enemy on the assumption that his plans are good; indeed, it is right to rest our hopes not on a belief in his blunders, but on the soundness of our provisions. Nor ought we to believe that there is much difference between man and man, but to think that the superiority lies with him who is reared in the severest school.

~ Thucydides (c. 460 BC - c. 400 BC), History of the Peloponnesian War

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