Volatility will continue .... Double bottoms

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Derek  9 Apr 2018


The volatility on world markets will continue until the Trade War between the US and China settles down. I cannot believe that Trump is so ignorant that he believes China will not counter every action he takes .... is this an ego game for him?

Trade tension eased slightly, and that made Asian stocks gain this morning.

I show the main support for the S&P500. The last -2.18% drop was a direct influence from the Trade War and Trump's last announcement. The JSE reacts mainly how the S&P500 reacts.

Like the S&P, Tencent is also on support. No winners in this Trade War.

Most shares are on support in the US. If these supports do not hold, we will be in for a rough ride. I show the no. 1 trend share in the US: Xerox Corp. Notice my thick green support line.

JSE Technical:
After Sasol went ex-divident, it came back to touch the support line again and then took off like a rocket. This could be a double bottom play out. Strong support (green) and resistance (red) line can be seen on graph.

Although Bid Corporation has a red Trend Factor, I wanted to show the similar situation to Sasol where a double bottom is busy playing out.

Do you think sanity can come to Trump? All that we can do is stay with the technical signals.

Enjoy your day.
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