Trump at it again .... Double bottom?

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Derek  18 Jun 2018

Morning,

International:
How Trump can reason that the Chinese will not counter his Trade-War levies, only he can understand? Well that is exactly what happened on Friday. When he introduced levies .... China did so too. Markets did not like this uncertainty and corrected. The Nikkei leads the Asian markets lower due to the Trade-War tensions this morning.

Both the DOW and S&P500 made long leg doji's to confirm uncertainty. Notice that the S&P500 still closed above the EMA8 line and with this correction is moving out of overbought territory.



There comes a time for even the best trending share to take a breather. Look at the sequence of events for Boeing. First it came to resistance with divergence in place. It made 2 doji's agains resistance to show uncertainty at this level. Then it started correcting, broke the trend and EMA8 lines and only then the Trade-War influence came after the correction was already in place. Notice where FrontRunner broke down and that MACD is also breaking down.



Berkshire Hathaway could not break its resistance and is back to support in its large triangle.




JSE Technical:
I mentioned it before: "The JSE only lifts its head one day to get hammered the next day". So was it again with the banks.

Standard Bank took the biggest hammering and was sold off all the way to support again.



One of the few shares on the JSE that was not influenced by politics and Trade-Wars was AVI. It has however now climbed into overbought territory as can be seen on the HeatMaps.



After 12 touches the past few weeks and going ex-dividend, Pick n Pay tried to lift its head again on Friday. In a normal market it has the makings of a double bottom. Do you see the double bottom developing? I did not mark it.



The Rand is still weakening and you get an extra return on abroad investments!
You must enjoy your day.
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