ASX 200 selling pressure continues

Iron ore found short-term support at $62 after a sharp fall. Declining Twiggs Trend Index signals selling pressure. Breach of $62 is likely and would warn of a test of the June 2017 low at $53.

Iron ore

Decline of ASX 300 Metals & Mining index similarly halted at 3100. Respect of 3000 would confirm the long-term up-trend.

ASX 300 Metals and Mining

The ASX 300 Banks index is consolidating below resistance at 8500. Respect of resistance would be a bearish sign, as would another Trend Index peak below zero. Breach of 8000 would signal a primary down-trend.

ASX 300 Banks

The ASX 200 continues to test support at 5650, in the narrow ‘line’ formed over the last four months. Trend Index peaks below zero warn of selling pressure. Breach of support at 5650 is likely and would signal a primary decline. But wait for breakout to confirm.

ASX 200

2 thoughts on “ASX 200 selling pressure continues

  1. Sam says:

    ** Breach of support at 5650 is likely and would signal a primary decline. But wait for breakout to confirm **.

    Why is it likely ?

    The TMF is at “lowest” – 10% – area; 5650 seems a bottom-band of support, given the history of the last five to six months. The red areas down [ inserted ] mean very little, at all.

    • ColinTwiggs says:

      I like to think I am open to contrary opinions but you don’t seem to understand that TMF oscillating between zero and -10% for several months is a strong bear signal. A fall to -20% as in 2008 would be cause for alarm but the damage may just as well be caused by TMF staying below zero for an extended period of time (9 months in 2008/9).

      ASX 200

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