Correction for Wold Markets .... Rocket Phase for JSE

    All Channels      Market Reviews  

Derek  17 Sep 2019

Good Morning,

Trump says US will release more oil to 'keep markets well supplied'?

Although analysts say that the markets overreacted, they did start a correction. I personally believe that the correction came because we were ovebought. See how the S&P500 broke my trend line, but not the EMA8 line. Notice the small divergence of FrontRunner.

The DAX did exactly the same. Notice FrontRunner's move!

You can see how Berkshire Hathaway broke down with a red candle from overbought territory. FrontRunner broke down and the MACD made a red bar.

McDonalds has been busy with its correction since the loooong green trend line was broken. Notice that the start of the correction was signalled with divergence, when the price could not break top resistance.

JSE Technichal:
The Financial sector is now in a rocket phase on the JSE. We will have to watch when its fuel runs out. I cannot recall when last we had moves like this on the JSE? Do notice that we are in overbought territory!

Woolies smashed top resistance with a massive +4.7% gain.

FirstRand was on its heals with a +4.6% gain. Notice that the 200 day moving average was broken.

Enjoy your day.
Download TradeFX™

Copyright © 2017 {Zoclee}™. All rights reserved.