Mixed trading .... Weekly Charts for Long Term Investors

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Derek  5 Apr 2019

Good Morning,

We had mixed trading in the US with profit taking, and some stocks continuing the positive trend. The Nikkei gains this morning on renewed optimism on U.S.-China trade talks.

The DOW was lagging the other indices because of Boeing, but has now also broken top resistance. We are however in overbought territory, thus all the profit taking.

Arista Networks is one of the shares where profit taking stepped in after a very long trend move. Notice the divergence that I marked on the chart.

Home Depot is continuing its trend, but is in very overbought territory currently. Notice that it even started having a green trend factor.

JSE Technical:

The RAND bounced on the 200 day average to weaken again.

PSG Group broke top resistance and then came back to touch the resistance again. Notice that the long term trend line remains positive and the trend factor changed to green. The 50 day moving average is also moving positively, parallel to my trend line.

For long term investors it is sometimes good to ignore daily moves and only have a look at a weekly chart for the overall movement. I show the chart of PSG again, but this time the weekly chart. Notice how all the daily noise is taken out of the chart. The bottom part of the chart is the Heiken Ashi chart that eliminates noise even more.

You must have a great weekend.
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