First BOUNCE not convincing .... Strong Platinum Sector on JSE

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Derek  7 Aug 2019

Good Morning,

The first bounce was not very convincing. Brace yourself for a 2nd wave of stock-market volatility. Asian markets mixed after China moves to stabilize yuan.

Markets usually correct in a abc formation and at c we should have divergence. I marked all this on the previous correction of the S&P500 together with the divergence. FrontRunner is warning that the bottom has not been reached?

Our no. 1 trend share, Advance Micro Devices, closed with a doji to confirm uncertainty. Notice that the bounce is still way below the EMA8 line, but in oversold territory.

Lets stay with my favourites. Bank of America also closed with a doji way below the EMA8 line in oversold territory. Notice the gap 2 days ago.

JSE Technical:
On the JSE the Platinum Sector made a strong bounce. Anglo American Platinum even broke the EMA8 line (orange).

While all these corrections were happening, Woolworths Holdings was just continuing its positive trend.

Clicks bounced on a strong support line and also closed above the EMA8 line.

Anything is possible in the Markets, but I do not believe that we are out of the woods yet?

Enjoy your day.
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