Trump sparked hope .... can it be trusted? .... TradeFX Admin

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Derek  19 Nov 2018

Good Morning,

Trump gave some hope with his comments that the Trade-War negotiations could soon be concluded. Can this be trusted???? NEVER, as conclusion does not mean favourable terms for all! This made the DOW and S&P500 close positive. In turn NVIDIA corporation dented sentiment in the technology sector to drag the NASDAQ further down. Asian markets quiet as trade tensions linger.

Notice how the high of the NASDAQ, the past 5 days, touched the EMA8 line, but could not move above it yet.

In the US you must not dare to miss projections, if you do, you get hammered. This is what happened to NVIDIA Corporation. Where it once was the top trend share and one of my favourites, it has now dropped to a red trend factor. (-18% in one day)

I am not very convinced by the latest bounce. Only a handful of shares managed to break their trend lines. Notice how Home Depot made a green bar, but the trend remains negative with the high still lower than the previous day and similarly for the low.

JSE Technical:
It is a struggle to show something positive on the JSE. Exxaro that I showed last week made a +3.73% gain on friday. Intead of showing the same share again, let’s look at the Resources Index (STXRES). It is on strong support just below the EMA8 and 200 moving average lines. If this support gets broken, some more corrections are to follow.

Like the Banking Sector, Capitec had a good run to start struggling against resistance. 4 Hammer and 3 doji candles in 7 days against resistance in overbought territory!

If you are using TradeFX, your data for REM and LHC might show incorrectly. Just right click on the share name in the Johannesburg Stock Exchange list and choose the option "Reload Data" for these two shares.

Markets are awaiting the trade negotiations outcome. Nothing wrong sitting on the sideline too.

You must enjoy your day.
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