Technology shares rally .... Remgro

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Derek  3 Jul 2018

Morning,

International:
The US had a late rally in technology shares and that made its Indices close positively. We are still at critical levels to get a new direction. The East is all negative this morning with only Australia positive.

I show the NASDAQ and notice how it went to touch the 50 day moving average again, then the rally came and it closed on the EMA8 line. Bulls and Bears are still fighting it out who is in charge.



It is then no surprise that one of the drivers of the NASDAQ, Nvidia Corporation, chart looks much the same as the NASDAQ, to also close just below the EMA8 line.



FedEx Corporation is also trying to break the negative trend. It still closed way below the EMA8 line.



JSE Technical:
The JSE also had lots of profit taking in early trading to finally close at the high of the day in late trading. Resources stayed negative.

Avi has been forming a nice flag and wants to break to the top now.



A friend of mine asked about Remgro, so lets have a look at this share. First the double top against resistance with divergence in place was the signal to sell. Then the long correction started and when the trend factor changed to red, it was another warning to get out. It has now concluded the abc correction into a dark red trend factor. First signs of recovering or sideways movement was when the trend line was broken. We are however still way below the 50 and 200 day moving averages that is negative territory. Also no exciting indicators like divergence etc.



In contrast the Banks made a rally yesterday. Notice the divergence of Standard Bank before the trend line was broken .... exciting!!!! Divergence shows true bottoms?



Enjoy your day.
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