Markets still in correction .... Case study continue .... Patience

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Derek  29 May 2018


The US Markets were closed yesterday for a public holiday. The East is still correcting with only the ASX of Australia positive.

You can notice on the HeatMaps of the ASX that it is oversold. Is it not very interesting that the first sign of a turn comes on first support? BUT all the other signals are still in a negative mode as drawn on the chart.

One of the independant analysts discussed Coca-Cola Co in the Beeld yesterday. While their market was closed, I show TradeFX's interpretation of this share. The Trend Factor is light red and it needs some positive moves to get it out of this mode. Notice that FrontRunner gave divergence at the double bottom and is now moving up. The MACD is also moving positively. If it breaks the horisontal resistance line today, all looks positively.

JSE Technical:
The JSE is mostly still in a correction mode. Sasol has broken first support yesterday and remains in correction mode. Notice FrontRunner and MACD, both moving negatively.

Billiton has reached first support too. Notice how its technical signals looks much the same as Sasol's .... all still negative.

Case Study DCP:
We continue with our case stusy of Dis-Chem to see how the story unfolds. Now that all the speculant investors that went short are out, it did try to break the EMA8 (orange line) yesterday, only to close below it again. Not enough postitivity yet to lift it above. It also closed below the high of the previous day. Like most shares on the JSE, it is also waiting for positive moves to push it above the EMA8 line. While it is below the line, the sentiment is still negative. Notice that the Trend Factor was for one day dark red, but with the one strong days move, it turned to light red again.

If you do not have patience .... the market will teach you to have patience and frustrate you to wait for oppertunities!

You must have a great day.
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