Nothing wrong waiting on the side line .... Divergence

    All Channels      Market Reviews  

Derek  1 Mar 2018

Morning,

Their is nothing wrong, if you are not sure, to wait on the side line for opportunities. It is sometimes better to wait for opportunities rather than be in the market full time?

International:
The US is still busy with its correction and I see this as the leg C correction. The HangSeng is not following the US and is about the only positive index.

Lets show the S&P500 and do notice that the trend line is broken! We cannot say when leg C is completed, but hopefully the technical indicators will tell us.



When I run SpotLight, I only get 4 recommendations to look at in the US and not one of them is worthwhile. I saw so many possible double tops yesterday, so lets show Intel Corporation. You might recall that we showed the bottom turn for this share. Look how it touched resistance now with divergence. I took my profit and rather wait for a new opportunity.



I have so many possible double tops that I will spoil you and show another one. Microsoft Corporation has also a possible double top, trend line broken, divergence!



JSE Technical:
In the absence of much positive to show, I must show Tencent that bounced on the 50 day moving average (blue line - 50 SMA acts as support). That is most probably why the HangSeng is positive as it is the largest company listed on the HangSeng. I could not find any news, hopefully my broker's team will search for some news today?



FirstRand also broke its trend line and do notice the divergence at the top.



Divergence:
It will take too long to discuss divergence here, but do google it. There are many good articles on the topic. Divergence can be used with any indicator, but I found it best and better defined with FrontRunner.

Enjoy you day.

Download
       TradeFX™       

 

Copyright © 2017 {Zoclee}™. All rights reserved.