Some stabilisation .... Perfect Triangle

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Derek  7 Dec 2018

Good Morning,

After the recent corrections, the markets seem to stabilise at current levels.

One needs 5 touches to form a perfect triangle and then the break out must follow.
See how the ASX has formed this perfect triangle and used the bottom strong support as the one leg of the triangle.

The S&P 500 also bounced on previous support for the day. The looming Death Cross (50 day average crossing the 200 day moving average) highlights a stock market in tatters. I changed the colour of my 200 day moving average to pink for more visibility. Notice that the 50 day average (dark blue) is now touching the 200 day average (pink). I stress again that I am not a big believer in the Death and Golden crosses, as it lags too much.

If the current support of Apple holds, it will have all the makings of forming a double bottom. It need to bounce off this support.

McCormick Company is one of the shares in the S&P500 that has a strong trend factor. Notice how the latest corrections hardly influenced this share. It only stalled at resistance without any correction! The trend is your friend!

JSE Technical:
Because I showed Sasol earlier this week, lets look what happened. It now touched my long term negative trend line 4 days in a row without breaking it? Notice the looming Death Cross on the chart. It is just confirming, like the red trend factor, a poor performance.

Discovery is still heading down with the only sign of change a long leg candle on previous support.

I will continue these market reviews for next week when we will closed for the festive season. If you are already on leave, do drive safely.

You must have a fabulous weekend.
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