Relative Sector Analysis
Relative performance and relative strength is meant to assist traders and investors in understanding the appropriate weighting/positioning versus the overall market. Combined with additional factors, a trader is able to determine whether they should hold an equal weight, underweight and overweight position versus the index. The data below represents the relative ratio charts (equally weighted) of the major sectors of the JSE versus the Top 40.
Each chart is presented with the following annotations:
1. A 2 standard deviation, 21-day linear regression channel (signifies 1 month) where, the upper boundary represents an overbought range (potential selling/distribution range) while the lower boundary represents an oversold range (potential buying/accumulation range).
2. Adjacent to the price chart (right hand side), is the Relative Strength Index for the following periods: 1D, 1W, 21D (1 Month) and 63D (1 Quarter)
These data points are included in my research. For more research insights, including trade ideas, get in touch today.
Each chart is presented with the following annotations:
1. A 2 standard deviation, 21-day linear regression channel (signifies 1 month) where, the upper boundary represents an overbought range (potential selling/distribution range) while the lower boundary represents an oversold range (potential buying/accumulation range).
2. Adjacent to the price chart (right hand side), is the Relative Strength Index for the following periods: 1D, 1W, 21D (1 Month) and 63D (1 Quarter)
These data points are included in my research. For more research insights, including trade ideas, get in touch today.
Disclaimer
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