Watch out for dead cat bouncing

    All Channels      Market Reviews  

Derek  23 Oct 2018

Good Morning,

We only get one good day, then there is something else again. This time is is the US / Saudi tensions again. Shares are so oversold that you must watch the dead cat bouncing.

It was only the NASDAQ that managed to have some positive move. Although positive, look how it closed just below the EMA8 average, 200 day moving average and trend lines. They are all coming together and we are still in negative territory.

The ASX All bounced and then made 2 doji's below the EMA8 average to carry on with the negative trend.

NVIDIA Corporation acted similar to the index. Notice the doji showing uncertainty below the trend and EMA8 lines. These lines need to get broken and I will show when it happens.

JSE Technical:
It was about only the JSE that had a good day. Tomorrow is the budget speech and all eyes and ears will be on that. Even Moody's extended their comments till after the budget speech.

I do not like it when one market moves against the rest? They should all move together. Notice how Discovery also closed below the major lines.

On the SATRIX 40 chart you see the same phenomena as mentioned on all the charts.

Lets wait for that cat to bounce?

Enjoy your day.
Download TradeFX™

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