Markets bounce as .... Harami candle pattern

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Derek  27 Mar 2018


Markets are bouncing as the trade jitters abate.

The US made a strong recovery with the East following this morning.

You get a Harami candle pattern when a current trend is turning. It is made up of a long candle followed by a small body candle inside the long candle. I am seeing lots of this in the US.

Bank of America (my old favorite) is one that made a Harami. Notice that this pattern happened on first support.

Similar for Coca-Cola. Do notice that Coca-Cola went into a red trend lately. Hopefully it can move out of it again.

JSE Technical:
I mentioned it before, but because it is so important, I must say it again. When strong support gets broken, it becomes resistance.

I show this on the graph of PSG.

And the opposite too, when resistance gets broken, it becomes support. I showed Bidvest yesterday and it turned out to be the best performer for the day. The EMA8 line is broken and it closed against the trend line. Notice how previous resistance became support.

You must have a great day.
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