JSE:J200 Resources Hedding to the Bottom of the ChannelThe Resources Sector has been in a nice upward trend since 2016. Now after reaching the overbought line the resources is correcting back to the oversold line.
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JSE:J210 Resources Overbought AgainThe resources sector has been trading in an upward channel since 2016. Price has now reached the overbought line again and we could see a correction after a pinbar has formed.
JSE:J210 Resources Approaching Overbought Trend LineThe JSE Resources sector has had a sharp increase from the oversold trendline (See post below). It is now testing the overbought line of the advance. Will watch for the reaction at this line.
JSE:J210 Resources Approaching Oversold Trend LineThe JSE Resources 10 Index has had a sharp decline and is approaching the demand line of the upward trend that started at the beginning of 2016. However, the decline to the demand line has been more dramatic than any other declines into the trend line. Will be watching for the reaction to determine if the upward stride will continue.
JSE Sector Comparison End of SeptemberThe JSE Top 40 has been ranging but finding some support at the breakout level of the previous trading range. Looking at the comparison of the three main sectors in the JSE since April we can evaluate recent relative strength. The Resources sector has been strong and even looking at resent lows on 12 September it has remained the strongest of the sectors. Financials have strengthened some since end of June and is also remaining above the September 12 lows. Industrials on the other hand had been tracking the Top 40 performance but since 12 September has been very week falling strongly even as the other sectors hold above the low. If the Top 40 is to break support Industrials would be the sector to look at to go short but if we see a bounce Financials and Resources would be the go to sectors.
