Latest GDP figures stops JSE move in its tracks

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Derek  6 Jun 2018


Small movements in the US yesterday except for the NASDAQ that made another +0.41% gain. Wall Street's "fear index" fell to a 4 month low. Yes, the US measures everything?
The East is all positive this morning.

Lets show The NASDAQ that is leading the positive move and making a new high. Top resistance is also broken.
I marked a flag break prediction move on the chart. We will see if it materialises, but the trend remains positively for now.

Just to illustrate the flag move consept, I show the predicted move for Alphabet Inc. Notice how the HeatMaps are warming up as we get closer to the predicted move.

JSE Technical:
Back to our problem child. The latest GDP figures stopped the JSE move in its tracks. The first-quarter GDP figures shrinks by 2.2%.

Banks took the biggest dive after the announcement and I show this for Standard Bank. It closed on the EMA8 line.

I showed yesterday 2 shares that have the potential to climb out of its red trend factor. Rand Merchant Investment Holdings is another one. It has reached strong support and then broke its negative trend line. Like most shares, it also corrected yesterday, but still closed above the EMA8 line.

Enjoy your day.
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