Huawei Licences Held Off .... Health Bill tumbles Discovery

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Derek  12 Aug 2019

Good Morning,

There are a lot of controversial statements of where markets are heading to? The U.S. corrected again on Friday as the U.S. is holding back on Huawei licences. I read that it is not in Trump's interest to actually reach a Trade-War agreement? If so, we will have to learn to live with this volatility for a long time to come.

With all the controversial news and unexpected tweets that make it about impossible to determine direction, I stay with the technical signs. I repeat what I showed last week: Wait for a bottom with a divergence (abc correction) or a bottom that is higher than the previous one. One of these two scenarios will happen!

Let’s see where we are now with the S&P500. The S&P500 made the leg b, but we are not sure yet which of the 2 scenarios will play out? I marked both scenarios on the chart at the previous bottoms. Patterns have a way of repeating themselves.

Since I showed Advanced Micro Devices last week, it reached resistance again, and did so with a gap. It is the 4th time it came to test this resistance.

McDonalds is only one of a handful of shares that is not bothered with all this corrections and is continuing its positive trend. Notice that the top resistance is broken.

JSE Technical:
The new Health Bill that is proposed had a dramatic effect on the price of Discovery as this might mean the end of Medical Schemes as we know it currently. Notice that we had a red trend factor for quite a while now.

Anglo Amercan made a bounce in oversold territory, but could not break the EMA8 line yet.

If you think markets can be scary, you need to watch the 5 part series Chernobyl on Showmax. It is a documentary on the nuclear disaster that occurred on 26 April 1986 at the No.4 nuclear reactor. This is real reality!

Enjoy your day.
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