Bumpy ride ahead .... Strong Support or Resistance

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Derek  24 Aug 2018

Good Morning,

I feauture strong support or resistance today.

There are a lot of jitters in the markets as we had the longest bull market in history in the US. As a result, a lot of profit taking is taking place. The people wants Trump charged for his election transgressions, he in turn states that world markets will collapse if they do so? Either way we are heading for a bumpy ride with Trade-War talks also on the cards.

The NASDAQ, that was lagging, also touched its resistance and then closed with a doji. This resistance was touched 4 times. The strong bull trend line is still in play. The market is either building up steam to break the resistance or it could be a start of a major correction? New news will determine which one?

United Rentals is caught between a strong resistance and strong support, thus moving sideways. I marked the touches that forms this Support and resistance. Notice how many touches there are.

Berkshire Hathaway is also hesitating against resitance with 5 touches.

JSE Technical:
I started yesterday to show how the shares in the Medical Sector are starting to get support with Netcare. Today I want to show the strong support of Life Healthcare Group where it started to turn. It still has a negative trend factor, but with good results it can climb back to positive territory. The support is very strong, as the more times it gets touched, the stronger it becomes. It was touched 12 times in 5 weeks. Also notice the divergence when the last touches took place. You should know by now that I LOVE divergence.

Woolies came out with terrible losses again. I zoomed out to see where we had any positive trend factor, and as you can see, the last high was in 2015. Terrible!!!! Be cautious of red trend factors.

Lets rather close positively. Discovery in turn came out with excellent results. It also had a red trend factor for a short while. That happened when government was making noises about their one for all medical plans. With its latest move it just went into a green trend factor again. Many things to see on this chart .... J-Curve .... trend line breaks .... FrontRunner break before latest move .... green MACD bars .... etc. Try to spot all.

You must have a great weekend.
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