Tencent does it again!

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Derek  17 May 2018


While world markets are still subdued, the highlight of the day was Tencent. Its net income climbed 61%. Mobile games drive growth. What can I say more?

The East is positive, but gave away some of its early gains. Australia is the only index negative this morning.

The ASX did manage to touch top resistance before it started correcting. Notice all the indicators heading down. It must first build some steam before we might see an attempt on resistance again.

Although the DOW closed positively, it did not do so very convincingly. Notice that we are still in overbought territory and how the DOW touched the EMA8 line (orange) two days in a row.

My other favourite, Bank of America, broke my trend line and notice that all the indicators are in overbought territory. It is also against resistance. Nothing is impossible, but it will take a lot of steam to break this resistance from this level according to me. Lets say it diffirently .... we are not in buying territory, rather profit taking.

JSE Technical:
The JSE was never in tandem with the rest of the world, but then came Tencent's results to give it a blast of note.

a Few things to note on the graph of Tencent. The 200 day moving average (thick red line) acted as support yesterday. As soon as it was touched the price moved up to form a long leg doji. FrontRunner is making rising bottoms, marked on chart. I showed it before and did not mark it today, but can you spot the double bottom with divergence?

This positive sentiment ignited most shares. I must show Exxarro Resources that is slowly climbing out of its long sideways movement.

I have been telling all my friends for a few years now: "Never underestimate internet gaming"

Enjoy your day.
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