Finally the break out .... Perfect triangle .... Too be bold!

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Derek  10 May 2018


Finally we got the break we have been waiting for so long. Both the HangSeng and the S&P500 broke their triangles to the top. As mentioned yesterday, I see this as the first leg of a bull market.

All positive in the East this morning.

A perfect triangle gets touched 5 times to form the triangle and then the break follows. The HangSeng and the S&P500 looks exactly the same. I show the S&P500 and notice the 5 touches I marked.

There are so many shares to show? Lets show one with some potential left, my old favourite Micron Technology, Notice that trend and EMA8 lines were broken and that MACD is also breaking up.

This is one of those days when you can just throw a dart in the bundle and that share will be positive. Lets show a top resistance break too. Electronic Arts had a massive 5.75% gain to break top resistance.

JSE Technical:
I showed Tencent yesterday breaking up .... +2.38% today. Lets see how Naspers is reacting. No fire works yet and the price is still below the 200 and 50 day simple moving averages. Even the Trend Factor has, with this correction, moved into yellow (not much trend) territory.

Most banking and other shares are just waiting on support in the JSE. Barloworld is one of them. Notice my support line and that FrontRunner has not broken its negative trend. Hopefully all of them will get ignited today to follow world markets.

To be bold:
I always preach that one must not anticipate charts, but rather wait for confirmation. But when one sees a perfect setup like the S&P500 triangle, you must sometimes be bold and use the setup to accumulate?

You must have a great day.
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