Not much fireworks expected .... Falling tops tip

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Derek  29 Mar 2018

Morning,

I do not expect much fireworks before the long weekend. Downward momentum is easing slightly. There are also small mixed movements in the East this morning.

International:
You can see the easing of momentum with a small body candle (close to doji) just above the 200 day moving average (support) for the S&P500. Notice my trend Lines.



You can also see this in some shares. Activision Blizzard also made a doji just above the 200 day moving average. Notice FrontRunner still has falling tops. We would like to see rising bottoms and no Trend line is broken yet.



JSE Technical:
The JSE made strong correction moves in line with world markets.

Sasol came all the way back to support with falling tops of FrontRunner. For interesting sake I marked the divergence in January when this share made a double top.



While we are waiting for the market to turn, lets show another example where support became resistance. Anheuser-Bush had a strong support that came all the way from 2016 that was broken and then it became resistance. Notice that the Trend Factor also turned to red even before the support was broken.



FrontRunner:
One way to use Frontrunner is to look at falling tops and risng bottoms. On falling tops you want the trend line on the tops to be broken. Similar when the trend line on the bottoms gets broken, downward momentum start.

You must enjoy a great long weekend.
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