Do not get dragged in by intra day bounces! .... EMA8 trend

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Derek  15 Nov 2018

Good Morning,

Do not get dragged in by intra day bounces. At the opening, the US opened strong only to drag the whole market down within 30 minutes. I am a strong believer that the close needs to be above the EMA8 line and none of that is in sight....only the HangSeng is on it.

The S&P500 opened on the EMA8 line, went for 5 minutes above it and then dropped. I marked again on the chart where the negative move started. Best to wait for similar signals at the turn.

Since we have been following Coca-Cola, I want to show it again to show a pattern that takes a long time to develop. a Share breaks up strongly and then go sideways between 2 resistance lines. When it then breaks the top resistance, the move is the same distance as how it went into the two sideways resistance lines. Hope that make sense? I marked it on the chart. Notice the 3 doji's in 6 days. My believe is that the run is concluded.

I show again where the correction for my favourite, Bank of America started with a FrontRunner break and red MACD bar. My trend line was broken about the same day. As mentioned before, no use going against the signals, not even if it is your favourite.

JSE Technical:
And then Tencent came with a 30% gain in profits while the analysts were expecting 2%. It broke the EMA8 line this morning. I marked on the chart where the divergence turn was.

The rest of the JSE is just following world markets lower. Discovery made a long leg hammer to close just above the EMA8 line, but still below the long term 200 day moving average.

EMA8 Average line
In the absence of trend lines, use the EMA8 line as your trend line. Steven Bugalow in the US only use this as his system. We give you much more to enhance it with the HeatMaps, FrontRunner and trend factor. There are 10 super cycle systems build into the HeatMaps.

Enjoy your day.
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