Golden Cross for Bidvest .... GAPS .... YouTube explanations

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Derek  28 Jan 2019

Good Morning,

All world markets are currently in a positive trend. We have mixed moves in the East this morning with the HangSeng and ASX positive.

The long term negative trend of the DAX is broken. It also made a gap, continuation or exhaustion gap? Notice how far below the 200 day average, the 50 day average is. World markets took a severe knock.

Stocks rally to close higher on earnigs as deal reached to end government shutdown in the US. All the indices made gaps? I cannot recall that I ever saw so many gaps at the same time. Let's show the S&P500 that closed against my long term negative trend line.

Although the indices were positive, it was only driven by a few selected shares. Many are correcting from the overbought territory. Wal-Mart stores made 2 doji's against resistance and then broke my positive trend line.

JSE Technical:
I mentioned before that I am not a big lover of the Golden Cross as it lags too much. I only keep an eye on it as Institutions and long term investors like it. The Golden Cross occurs when the 50 day moving average crosses the 200 day moving average and the price also needs to be above both averages. As you can see, these are very long term averages, thus the lagging aspect that I do not like. The Trend Factor in TradeFX helps you similarly not to invest in shares where the Trend Factor is red.

Bidvest is busy making a Golden Cross and everything mentioned above can be seen on the graph. Notice that when the trend factor was dark red, how far below the 200 day average (pink) the 50 day (dark blue) average was. Also to notice is that the price and the averages are all together with the price only slightly higher than the averages.

BHP Group build a new strong support that was touched 7 times in 13 days. It closed against my negative trend line.

There are so many interesting graphs that I must show one more. FirstRand made a gap close to top resistance. The question is whether this is a continuous or an exhaustion gap? Unfortunately there is no way to tell until later. BUT do notice that we have unconfirmed divergence in place that makes me believe that this could be an exhaustion gap! Let's keep an eye on this share and see what develops.

Just another reminder that you can click on the blue words to watch a YouTube video explanation of some of the terms used in this review. On the YouTube page you can also do your own searches if I did not provide a link.

Another reminder that cyclic signals must be ignored when in a trend until the trend is broken. Be careful of all these gaps!

You must enjoy your day.
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