Level 3 Divergence .... Google Collapse .... Platinum's Turn

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Derek  26 Jun 2019

Good Morning,

International:
I was surprised yesterday that the markets did not correct more, but it just took a day longer! S&P500 -0.95% NASDAQ -1.51%

The S&P500 only managed to close 3 days above my resistance. Another false break! I want to show the level 3 divergence on the S&P500 chart. Level 3 divergence is when the price gain faster than the indicators. I marked the 2 lines on the chart to show the angle difference.



The 200 day moving average (pink line) acted as resistance for Google. Notice the trend line break, EMA8 line break, FrontRunner break and red MACD bars!



AutoZone turned with a level 1 divergence. I am trying to show the diffirence to a level 3 divergence. Angle of price line is positive, but the indicator angle is negative.



Even my old favourite, Bank of America, turned at resistance. Notice where FrontRunner broke its trend line.



JSE Technical:
And then it was Platinum's turn to follow gold. Both Anglo American Platinum and Impala Platinum gained more than 5% to smash top resistance. After the J-Curve against resistance it just took off.



Naspers was ticking up nicely before the Amsterdam listing, and then the admin error! The listing is now extended until September and the price started correcting after the error. I cannot believe that one can make such an error of wrong adresses???? I can confirm the error, as I received 4 circulars that was not mine? I assume the price will tick up again as we get closer to the September listing.



You should be asking: "What is a level 2 divergence?"
A level 2 divergence is when the price divergence angle is zero and the indicator angle negative. All these divergences shown today are top divergences. For bottom divergences the opposite is applicable.

Enjoy your day.
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