China-U.S. Tensions Eased .... Flag Breaks

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Derek  18 Feb 2019

Good Morning,

The US indices had big gains as the China-US tensions eased.
The NASDAQ was the last index to break the 200 day moving average in the US. All indices in the US are now in BULL territory. It is only the Nikkei and DAX that are still below the 200 day moving average. The East is following this positive trend this morning.

I want to show the DOW that gained the most and is well on its way to top resistance. In such a trend, all cyclic signals must be ignored. "The Trend is your Friend"! I also marked on the chart where the MACD broke up.

If you have been following these reviews, then you will know that I love flag breaks. I marked the flag on the chart of Pfizer.

And another flag break for Advanced Micro Devices.

JSE Technical:
The JSE was still dominated by the weaker Rand.

FrontRunner predicted again a much higher high for Kumba Iron Ore, but it is showing signs of exhaustion now while making the new high. We have a doji with divergence in place.

On the other side of the coin FrontRunner predicted a new low for Sanlam. While making the new low, divergence is in place and it closed on the 200 day moving average. A share to watch for the turn, depending on the Rand.

The Rand has a big influence on both these shares. What will be announced this week about how to save Eskom, will have a big influence on the Rand again? A further downgrade by Moody's is also on the cards.

You must enjoy your day.
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