Note how the trendline that has formed has had its 3rd successive touch with a reversal candlestick. Each turn off support has created strong upside price action the following day. The level where the top40 found support is even more significant as the 67500 has been a massive change of polarity on many occasions through the second half of 2023. The bulls have...
It's been a very tough year for swing traders. Go long the market drops. Go short the market rallies. Don't do anything and you save from the burn. But in the bigger scheme of things, it looks like we are in an accumulation phase. The accumulation phase is a period in which smart money (informed and experienced traders or institutional investors) is...
3 new lows in price, not confirmed by higher lows in RSI.. Is this warning of a rally to come in the JSE's top40 index?
Nasdaq and Dow Jones have been leading the pack with the indices. And now it looks like the JSE ALSI 40 is about to catch up. It's broken above the downtrend since 1 August 2023 and is showing upside to come. During the process, it's formed an Inverse Head and Shoulders. The right shoulder is not the most attractive with the neckline, but it's the overall...
Inverse Head and Shoulders has formed on the 15m. Downtrend is also abolished. We can get a test at the new support before it rallies on up to 71,416. This might give a conservative entry level for bulls, before the next leg up. The daily trend however, needs a lot more upside before we get into a Bull trend (but hey it's a start)
The J200 has been quite lackluster for a while now, it is still rangebound between +/-59000 and +/-63000. 62000 has been capping gains quite aggressively and is a very important level. It remains a sit and wait type of market for now, this coming week or so may well give it some direction.
Main view on J200, range stays intact unless a daily close below 59000 occurs, high risk to reward long here in the buying zone targeting +/- 63000
As indicated in the post linked below I a break of the trendline could start the markdown. We have now seen this break and a backup to the breakout level. The break occurred on some volume and the attempt to recover could not break the 50Day SMA and could not stay above 60000. This looks very weak and this could be the start of a markdown.
This is an analysis on AngloGold Ashanti. From an inflation point of view I think this is a good stock to invest in as gold is also now turning the trend more upward, ANG could also have a big swing up. Disclaimer: This is just my opinion on the stock. Tread carefully and best of luck to all the other investors out there!
Will we see support come in at 200dma at +/- 57000, or can we see a full target reached at +/- 55500?
The Top40 has been on the rise since the covid lows, however, we can now see some cracks and we could be in for a correction back to 53000 for the rest of the year. My reasoning is as follows: - The buying climax (BC) of the latest trading range could not make it back to the overbought line showing a lack of interest. - Divergence on the RSI leading into the BC...
TOP 40 may be preparing for a continuation higher to the upside 68000 and 72000
The JSE has had a good run showing some signs of strength (SoS). After a spring and markup, we tested 60000. Buying interest is lower than November/December which could indicate some consolidation in the short term. This could result in a backup with a set of the breakout level at about 54000. Will watch how this develops.
After the recovery from the Covid lows, the JSE has been underperforming the S&P500. However, since the start of the year, the JSE has been outperforming it. However, the low holiday volume should be taken into account. However, the start of the year could indicate where the JSE is at.
Starting 2021 we find that the recovery from the Covid lows is still in progress. After a pullback and low formed in October 2020 we are seeing another push higher. Resources are again showing the most strength with a nearly 40% rise. However, financials are also recovering well at this stage but industrials are lagging. Over the holiday period, we have seen a...
After the distribution and markdown (discussed in previous posts), we have had a selling climax (SC). This is noted by the high volume and capitulation of the market. Now we are seeing an automatic rally (AR) from the SC lows. This should back up (BU) to the previous distribution trading range. Once this is done we could see a trading range form (fluctuating...
Institutional investors which include foreign investors have bee distributing the JSE stocks since 2015 (see posts below for further analysis). Following a Wyckoff approach to the markets an upsloping distribution range was formed and now the markdown has started. Price has broken the upsloping stride and the lows of the automatic reaction (AR) at the start of the...