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Jsetop40

The rand is going up FINALLY! Target R15.92 - With confusion!Rounding Top (Scallop) has formed on the daily chart. The price has broken below the neckline which signals bearish for USD Also the moving averages are almost looking good. 21 > 7 >200 - Bearish First target R15.92 The correlation between the Rand and the JSE stocks have somewhat reversed as of late. When stocks rise, the rand tends to strengthen and vice versa. Now this makes sense in a way that a stronger rand means more buying power for consumers and more confidence in the economy. However, we are a HIGH export country where we export in US dollars. As the heavy weightings of the JSE is with resources, we used to fall with a weakening US dollar. Also, we tend to mirror the S&P500 and the DOw Jones as it's a leading indicator. So the question we need to ask is... Is America signalling that we are in for massive downside again soon and this has just been a bull trap for us buyers. OR is this the change in correlation where the JSE will continue up despite what happens in America and the US Dolla. I Hope the latter. Things aren't as they always seem.
Short
by Timonrosso
3
Birdvest going to R258.13Cup and Handle has formed on the daily with Bidvest. The price has broken out and we are being a bit premature to go long, but the demand pressure is strong. 7>21>200MA Bullish signal Target R258.13 Fundamentally, with the interest rate decision to pump up the market responded mostly positively for a short term view and this is probably because of the buying taking place from the positive fundamentals in America with a slow down rate with inflation, QE and interest rates. We can only hope this bull run continues as we traders deserve it waiting all these months :D CONCERNS: The price has been moving in a solid sideways formation, which makes it a medium probability trade. I'll be only risking around 1.5% of my portfolio for this one.
JSE:BVTLong
by Timonrosso
JSE ALSI 40 ready to rock to 73,300The JSE ALSI 40 is finally showing strong upside since April 2022... It's broken up and out of a box formation and is showing the first target to 73,300... This is based on following the recent America's rally with the inflation rate coming down finally and dropping below the expectations. GDP is picking up and jobs have added over 261,000 jobs. The leaders of the pack was Naspers, Anglo American, Sasol and Shoprite helping push up the JSE. Bullish Bias...
JSE:J200Long
by Timonrosso
1
Standard Bank upside to come to R186.29Falling Wedge has established on Standard Bank. Price has just broken above, but it's early days. 7>21 but 200 is still flirting with the previous Moving averages... My first target is R186.29. CONCERNS: The JSE is mirroring the upside of the American markets (with the good earnings results) With the Dollar strengthening again, this bull run could be short lived and the market could crash below forming a fake out. I'll nevertheless take the trade and only risk 1% of my portfolio...
JSE:SBKLong
by Timonrosso
Choose your loss buy or sell We are currently in a very difficult trading environment for the JSE ALSI 40 (and the stocks in the index) and I believe world wide (with most markets). This sideways movement has been going since July 2022... The world is in a rut with major issues like high inflation, ongoing interest hikes, currency collapses, US dollar strength, UK economic collapse, East wars and COVID recovery. Our hands are unfortunately tied, how long this will last and what the damage will be (drawdown wise). But we will control it with lowering our losses from 2% to 1.5%. This will all be guided through a process until we overcome it... But it's part and parcel with trading and it's something that is very common on a yearly basis... HOWEVER! This is crucial to understand as a trader. Since the derivative markets, the algorithm of movement (between buying and selling) has changed drastically. From the markets moving in strong trends (70% of the time) from 1940 - 2007 where a monkey could have thrown a dart and profited from any Blue Chip stock for 20 years. To now we are seeing the markets trend around (20% of the time, if that) from 2007 -2022. We have no choice but to make the stop loss and take profits prices tighter and to hold for less period of time. This will be a patience game but will be worth it in the end. Only those strong enough to stick around and act accordingly with their correct risk management will reap the rewards. What are your thoughts?
JSE:J200
by Timonrosso
1