Viceroy gave extra correction ....

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Derek  31 Jan 2018

Morning,

International:
Markets can never go up in a straight line. When corrections come, it can be painful sometimes, but that is the market's way to get rid of weak hands.

Only The HangSeng managed to stay above the EMA8 line while all other indices closed below the EMA8 line. I show the DOW that made its correction with a gap (Window) to close below the EMA8 line. Notice the divergence before the correction.



The East is positive this morning. I must show Tencent that never closed below the EMA8 nor the trend line. Compared to Naspers that corrected excessively.



JSE Technical:
The shares on the JSE were send into extra correction after the Viceroy report on Capitec. I think that overseas investors now just had enough of SA companies after the Steinhoff debakel. Steinhoff missed giving their results again by the end of January. My own opinion of Capitec has always been that the cliental of Capitec can never pay back the high interest loans that they get. When my staff at home tells me that all their friends took out loans at Capitec ..... I get shivers up my spine .... decide for yourself if the Viceroy report is true?

While we wait for markets to stabilise, lets continue my double top topic of yesterday. Famous Brands is not a recommendation, as its trendline is red, but I wanted to show the double top.



Barclays Africa is another excellent example of double top. Notice the divergence too.



Enjoy your day.

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