All markets are correcting .... Double Top with Divergence

    All Channels      Market Reviews  

Derek  8 Oct 2018

Good Morning,

All markets are still correcting.

The S&P500 touched my first support on Friday and the made a small bounce. Notice again the divergence that I marked when the correction started. Divergence with FrontRunner is about 99% accurate.

Let’s show the FTSE 100 too. I marked on the chart where FrontRunner broke down in overbought territory (Red Heatmap) and the MACD made a red bar. Pretty much the top before the correction!

The HangSeng bounced on support this morning and is currently not at the low of the day. Notice that the touch came with divergence in oversold territory!

A Double top with divergence is a signal for all alarms to go off telling you that this is the top.
You can clearly see this scenario on the chart of Ansys .

let’s show FrontRunner again on the chart of Lowes Companies. First FrontRunner warns about a higher high coming. Then after 5 weeks we have the much higher high in the form of a doji. a Small correction followed and then the high was tested again. This time FrontRunner is showing divergence .... BIG WARNING that this is the top.

JSE Technical:
Not much to show on the the JSE, so let’s continue with double top with divergence. Anglo American did exactly this against resistance on Friday. Interesting to notice that FrontRunner never broke above its 3 red lines to warn that a new high was coming. That was a warning that the resistance line would not be broken.

The reverse of this scenario is also true. Bid Corporation made 2 doji's on support with divergence in oversold territory (Green HeatMaps) and divergence in place.

Let’s hope that we get these excellent signals when the turn comes? Because we are in oversold territory, I think it is not far away.

You must enjoy your day.
Download TradeFX™

Copyright © 2017 {Zoclee}™. All rights reserved.