Asia Update
By Colin Twiggs
September 18th, 2012 9:00 p.m. ET (11:00 a.m. AET)
These extracts from my trading diary are for educational purposes and should not be interpreted as investment or trading advice. Full terms and conditions can be found at Terms of Use.
Dow Jones China index is retracing to test primary support at 245. Declining 63-day Twiggs Momentum, below zero, continues to indicate a primary down-trend. Failure of support would offer a target of 200*.
* Target calculation: 250 - ( 300 - 250 ) = 200
Hong Kong's Hang Seng penetrated the descending trendline at 22000, indicating an advance to 22000. Recovery of 63-day Twiggs Momentum above zero suggests a primary up-trend. Breakout above 22000 would confirm.
India's Sensex broke through 18500, confirming the primary up-trend. The trough above zero on 13-week Twiggs Money Flow indicates buying pressure. Expect retracement to test the new support level.
* Target calculation: 18.5 + ( 18.5 - 16.0 ) = 21.0
Singapore's Straits Times Index respected support at 3000. Rising 63-day Twiggs Momentum, above zero, indicates a primary up-trend. Follow-through above 3100 would indicate an advance to 3300*.
* Target calculation: 3000 + ( 3000 - 2700 ) = 3300
Japan's Nikkei 225 is testing resistance at 9200. Breakout would signal a primary advance to 10200. Recovery of 13-week Twiggs Money Flow above zero indicates rising buying pressure.
* Target calculation: 9200 - ( 9200 - 8200 ) = 10200
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