Marginal profit taking .... Exhaustion gap?

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Derek  24 Jan 2018

Morning,

International:
After the recent moves, it was only to be expected to get some profit taking. You see that in the East this morning. Only Australia is moving stronger as it only turned a day or two ago. The DOW closed unchanged with the Nasdaq and S&P500 +0.71% and +0.22% respectively.

One of the most difficult gaps to determine is to decide between an exhaustion or continuation gap. Only time can usually tell. I show the NASDAQ that made such a gap. You decide if this is an exhaustion or continuation gap? It was created with excellent results of companies, to help you?



I show how Coca-Cola only poked its nose above resistance, and then fell back to close on resistance. Notice that FrontRunner has broken down.



JSE Technical:
Sorry about PSG shares yesterday. Within a 2 hour window all the shares were taken up the previous day, so my message was way to late. I think that this says a lot for the quality of PSG shares, and Steinhoff sold it so fast to get cash.

With all this action, the negative trend line was broken and Steinhoff cannot influence PSG anymore.



The only banking share that has not taken off yet is Capitec. It closed with a doji against the trend line and notice the trend line I have drawn on FrontRunner. When the one breaks, the other one will too.



With the Rand still strenghening, FirstRand smashed top resistance. Notice where FrontRunner and MACD broke up. Remember that MACD is a lagging indicator, more stable, but lagging.



Resources are correcting with the Rand strenthening and you might recall when I showed Billiton a few days ago. There is a lot to see on this graph. False breakout, divergence with FrontRunner, double top, Frontrunner breaking down, EMA8 broke down, MACD is breaking down now (lagging). See if you can see it all?



If you need a little help with interpretating charts, my door is always open and it is free. I can be contacted at: derek@zoclee.com
You can also send requests of what shares I must feature?

Enjoy your day.

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