We've started off the year of 2024 the same way we started in November 2022. In a sideways range with a high of 75,000 and a low of 63,000. This is very disappointing and tough for position and swing traders who mainly focus on the JSE stocks. What can we do this year to help ride up and down the range? I can give some ideas but it's up to your trading...
As expected, the JSE ALSI consolidated a handle and the price broke up and out of the brim level. This aligned with the upside of the Santa Claus Rally along with the resource rally. We also have the January Effect that will continue to push the price up. We have an aggressive entry on the longer time frame, and others will wait for a pull back to the brim...
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...
W Formation is forming on DRD Gold. It's been a slow process, considering how many gold stocks have been outperforming the index itself. But we are seeing signs that it's nearly DRD Gold time to shine... The price is close to the neckline which needs to breakout. We also need to see a confirmed close and strong move above the 200MA. The target remains at...
Cup and Handle and Triple Bottom has formed on ALSI over the past two months. Sentiment has been turning bullish with international factors. On the one hand, America has paused interest rate hikes which is leading to a global rally. Four main reasons why a drop in Interest rates causes a market rally namely: 1. Cheaper borrowing for companies 2. Higher...
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...
M Formation has been forming since January 2023. We had a break up, test and it failed. THe market has continued to make lower highs showing the sellers and supply have domninated the market. It's important to hedge shorts during these times and ride the markets down. Other indicators show downside: 7=21 Price<200 RSI<50 Target 56,483
I've been trading since 2003. And if you're a position (swing trader , medium term) trader, you'll know there comes a time where the markets flow in a difficult range... There are two types of markets when it comes to strategies. Favourable and Unfavourable. Right now, I don't mean to speak for everyone else, but I believe the markets are in an unfavourable...
Once again the imfamous Mr Market JSE has fooled us again... After the 1 year twilight zone of going no where, the price broke below and entered into a BEAR MARKET... However, it lasted literally 7 days before jumping right back into the range... It's not only broken above the downtrend line, the price is testing the support, which could form potentially a...
Rectangle pattern formed on Raubes. The price still hasn't broken up or down. But the signs are more bullish despite the negative sentiment with the JSE ALSI... However, it is a waiting game until there is a solid breakout to the upside. Other indicators show up momentum... 7>21>200 RSI>50 Target R40.10
JSE ALSI 40 is currently testing its November 2022 Support (which was resistance). The price will need to break below to get traction to the downside. It can take a few days and for bulls and bears to fight this one. But we'll see. If it breaks down there is a decent target 59,369/ My bias is indeed down, but there does need a strong catalyst to break this.
Bearish Symmetrical Triangle has been in the making since 17 November 2022... However, the last few months, the JSE has just not been able to break above it's most recent declination resistance. Instead, it's for the first time, broken below the formation - showing the bears are really starting to win. How long will it last we don't know. But it looks like the...
JSE ALSI 40 - Update We've seen the ALSI 40 form a restriction range between 70,122 and 67601. It broke above the downtrend on Friday, just to come back down and form a fakeout following Americas downside on Friday night. As most Premium know. Monday is a choppy day with no definitive chosen trend and so we'll let it choose a direction first before making any...
M Formation has formed on the JSE ALSI 40. While the SP500, Dow Jones and Nasdaq have been going up this year, it strangely looks like the JSE ALSI 40 has broken it's correlation. Not only has America NOT been leading the JSE, it seems like the problems (economically and politically and socially) are showing signs for the country. Now, either we get another...
The JSE ALSI 40 is retesting the support from the breakout from the broadening formation... We need this level to hold to continue the upside. America got downgraded from AAA to AA+. This might cause turblence with the upside to come. We'll have to let the panic settle and for the bulls to continue fighting for the upside support. I'll let you know.
This week I remain an optimist that we will see a higher low with the JSE. And it will soon (not sure when) break up and out of the long extended Vuvuzela formation. Once it does my first short term target will be to 75,000. Every year it seems the JSE is testing traders more and more. Some fundamental news: Someone asked about what happens with the Interest...
Well, well, well, we've identified the tumultuous and monotonous pattern on the chart finally. It's known as a Broadening Triangle or what I call a Vuvuzela Formation. The price diverges instead of converges in a triangle pattern... Now this can be a continuation or a reversal pattern. It all depends on the breakout. Looking at the D&S and liquidity it...
Hi guys, this could be a concern. JSE ALSI 40 has been forming a broadening pattern (Vuvuzela) since 12 April 2023. Now with these patterns, they can break any direction... If we make a higher low, the chance of the price breaking up is higher. Then we can expect the price to finally break up and out and head to 75,000 as the first target. As this is...