Markets retreat as FED .... Divergence against resistance

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Derek  27 Sep 2018

Good Morning,

Markets retreat as the FED raises interest rates a third time in 2018. The East is also following this negative trend this morning.

I show where the correction started, only looking at technical and ignoring the FED's decision. First a doji 3 days ago in overbought territory, then a FrontRunner break, then the red MACD bar. After the FED's announcement the EMA8 line is also broken now. Only the long term bull trend line is still holding.

Netflix was one of the few shares that went against the trend and broke top resistance.

Lets show how the correction started for Johnson Johnson. Divergence with FrontRunner in overbought territory is always something never to ignore! I marked the divergence, FrontRunner break and red MACD bar.

JSE Technical:
The JSE will most probably follow this negative trend.

Clicks made a piercing candle, but the trend line and EMA8 lines are not broken yet.

I showed Anglo yesterday, so lets look at Billiton. Divergence against resistance is the key here.

Just a reminder that all shares with divergence in place are shown in Analyst Expert. It is only a warning signal as they are non-confirmed signals, but worth a look at.

Enjoy your day.
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