Nothing goes up in a straight line ....

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Derek  24 Oct 2017

Morning,

International:
The US took a breather yesterday, but the East is all positive this morning.

I show the Futsi and notice how it is consolidating below the resistance. Australia has also reached resistance and is doing exactly the same. We can expect an unslaught by the bulls on this resistance.



No share goes up in a straight line, not even Tencent. I marked the consolodation phases of Tencent on the chart. This happens when you get profit taking by investers that believe the share price is now high enough?



JSE Technical:
PSG is also ina consolidation phase. Notice on the chart that this happens when the share is in overbought territory. This is not necessary a sell, unless it breaks downwards.



I show Anglo that is also in a consolidation phase. Notice that each consolidation started in an overbought area. Each consolidation is higher than the previous one. This is a sign of a strong bull trend and consolidation must rather be seen as accumulation areas.



Enjoy your day
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