Japan-South Korea trade tensions .... Effective trend lines

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Derek  26 Jul 2019

Good Morning,

As if Trump's trade-war did not create enough uncertainty on world markets, we have the Japan-South Korea trade tensions added. All markets are pulling back on these uncertainties.

The S&P500 did manage to close above the EMA8 line and we are in neutral territory.

We are still busy with result season in the U.S. with lots of volatility.
Masco Corp smashed top resistance with a gain of +8.11% and a breakaway gap.

And then those shares that did not meet expectations. Align Technology dropped a massive -26.99%, also with a breakaway gap to the down side.

JSE Technichal:
Sasol used to be one of the pride shares on the JSE. With its latest results and construction problems in the U.S., it also joined the long list of shares that has a poor trend factor. I show on the chart where it turned red. It dropped from a high of R585 to the current R308.

Like Sasol, the Financial Sector is still making a huge correction. I marked the trend line cycles on the chart to show how effective trend lines are.

A technical analyst were asked: "If you have to choose only one indicator, what will it be?" His immediate answer was: "A Trend Line!"

You must have a great weekend.
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