Monday ASX Update
By Colin Twiggs
August 28, 2006 04:10 a.m. ET (18:10 a.m. AET)
August 28, 2006 04:10 a.m. ET (18:10 a.m. AET)
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ASX Australia
The All Ordinaries retraced to test resistance at 5000, today's doji candle [M] indicating that resistance is likely to hold. A fall below Thursday's low of 4960 would confirm this. Expect some support at 4880/4900, but a test of primary support at 4800 is equally likely. Though less likely, a close above 5000 would signal a test of 5100. Twiggs Money Flow (21-day) is headed for another test of the zero line; the outcome will signal future direction.
The All Ordinaries retraced to test resistance at 5000, today's doji candle [M] indicating that resistance is likely to hold. A fall below Thursday's low of 4960 would confirm this. Expect some support at 4880/4900, but a test of primary support at 4800 is equally likely. Though less likely, a close above 5000 would signal a test of 5100. Twiggs Money Flow (21-day) is headed for another test of the zero line; the outcome will signal future direction.
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Author: Colin Twiggs is a former investment banker with almost 40 years of experience in financial markets. He co-founded Incredible Charts and writes the popular Trading Diary and Patient Investor newsletters.
Using a top-down approach, Colin identifies key macro trends in the global economy before evaluating selected opportunities using a combination of fundamental and technical analysis.
Focusing on interest rates and financial market liquidity as primary drivers of the economic cycle, he warned of the 2008/2009 and 2020 bear markets well ahead of actual events.
He founded PVT Capital (AFSL No. 546090) in May 2023, which offers investment strategy and advice to wholesale clients.