NAS100I want to say "control C and then control V" from the US30 analysis but we are not parents that believe all their children are the same. They may have similar traits but they are not the same.
Zoom out and you'll see that the current phase is a correction after the touch on the BLUE LINE, it impulsed up and is now correcting. We are waiting for impulsive candles which will show us direction and demand of that direction.
1. Reversal within the channel
2. 3rd touch on the smaller 15min channel (Top Part)
3. Candles have reduced in size, indicating a smaller demand = less supply
Southafrica
US30This muscle called the heart sitting behind my sternum, is about to break my sternum because of emotionally filled answers and observations. It wants the market to break down and keep falling. So let's do the money thing and put it aside and let the brain take over.
We only have one confluence
1. Channel within a channel
Due to lack of confluences, we will wait for more information.
UJMy heart wants to forecast but knowing that muscle, I'm gonna follow logic🤣🤣.
1. Double top (M formation) on the 1H chart
2. Correction of the bigger trend
3.
There is no 3rd confluece as of yet, so WE WAIT BEFORE WE SET OUT ORDERS
Long on WoolworthsWe have entered a long position on JSE:WHL based off of the turning of the stochastic and MACD as well as the crossing of the 3 and 15 EMAs. The target for this trade is the 63.50 level which coincides with the highs from September 2021.
REM - LongWe have entered a long position on JSE:REM based off of the turning of the stochastic and MACD as well as the crossing of the 3 and 15 EMAs. The target for this trade is the 154 level which coincides with the highs from March 2022.
CAPITEC LongWe have entered a long position on JSE:CPI based off of the turning of the stochastic and MACD as well as the crossing of the 3 and 15 EMAs. The target for this trade is the 230 level.
SOL|ZAR - Wil we see more downsideSasol Limited, together with its subsidiaries, operates as an integrated chemical and energy company in South Africa. The company operates through Mining, Gas, Fuels, Chemicals Africa, Chemicals America, and Chemicals Eurasia segments. It operates coal mines; and develops and manages upstream interests in oil and gas exploration and production in Mozambique, South Africa, Canada, and Gabon.
Now 22% undervalued after recent price drop
- Over the last 90 days, the stock is down 2.9%.
- The fair value is estimated to be R447, however this is not to be taken as a buy recommendation but rather should be used as a guide only.
- Revenue has been flat over the last 3 years. Meanwhile, the company has become profitable.
- Revenue is forecast to grow by 18% in 2 years. Earnings is forecast to grow by 391% in the next 2 years.
SOL|ZAR - Now 22% undervaluedSasol Limited, together with its subsidiaries, operates as an integrated chemical and energy company in South Africa. The company operates through Mining, Gas, Fuels, Chemicals Africa, Chemicals America, and Chemicals Eurasia segments. It operates coal mines; and develops and manages upstream interests in oil and gas exploration and production in Mozambique, South Africa, Canada, and Gabon.
Now 22% undervalued after recent price drop
- Over the last 90 days, the stock is down 2.9%.
- The fair value is estimated to be R447, however this is not to be taken as a buy recommendation but rather should be used as a guide only.
- Revenue has been flat over the last 3 years. Meanwhile, the company has become profitable.
- Revenue is forecast to grow by 18% in 2 years. Earnings is forecast to grow by 391% in the next 2 years.
Potential short on NaspersAn upward trendline ahs been broken on JSE:NPN as well as the stochastic and MACD both turning downwards. This could mean that we could be seeing a downward move if it breaks lower. Be cautious, though, as the markets have been extremely volatile lately.
NED - Bullish EngulfingA bullish engulfing has formed on JSE:NED . This could mean a reversal to the upside.
GRT - potential longJSE:GRT is showing signs of an upward move. If it breaks higher than 1330, I'll enter a long position.
BTI looking good for a shortThe Stochastic, MACD and the 3 and 15EMA's have all crossed downwards on JSE:BTI which are all good indications of a possible short position. If it breaks lower than the opening of this morning, I will enter short.
Large Engulfing CandleA very large engulfing candle has formed on JSE:NPH . It has engulfed at least the last 6 candles which makes it a stronger signal. So I think we can expect an upward move from here.
Harami on WoolworthsA Harami candle pattern has formed on a support level on JSE:WHL . This candle pattern potentially indicates a reversal, so we could see a move to the upside from here.
SA40:SOUTH AFRICAN INDEX DOWNTREND | SHORT SETUP ⚡️Welcome back Traders,
Detailed analysis from INDEX_INSIDERS Team.
Please support our Idea by hitting the LIKE 👍 button
Traders, if you like this idea or have your own opinion about it, please write your own in the comment box . We will be glad for this.
Feel free to request any pair/instrument analysis or ask any questions in the comment section below.
Have a Good Day Trading !
Outlook On Nas100Here is an outlook on Nas100 on H1 timeframe. The market had it's fair share of shorts so it has been oversold on lower timeframes, so the market will open up space for buyers with the buying strength at +0.08% to +0.15% which is a slightly lower momentum for the buyers. The market has created a bullish flag and as a result of that we are expected to have high momentum in short position between 11727.4 and 11845.6, we must expect shorts when the US trading session opens. We may go short around 11845.6 to 11062.5 if the momentum on long position is lower than that of shorts.
N.B: This is not the conclusive analysis on NAS100, the market may respond differently, when using this analysis take your precautions and apply a proper risk managemnt plan.
Kumba - short We have entered a short on JSE:KIO based off of the stochastic, MACD and EMAs all pointing downwards. Aiming for the 377 level for our target.
JSE ALSI 40 - Short - Inverse Cup and Handle Technically an Inverse Cup and Handle has presented itself.
The breakout below the brim level is still quite a weak breakout, but the stop loss is quite wide to give leeway.
Fundamentally, Inflationary measures and rising interest rates are going to have a ripple effect around the world. The JSE will also following leading markets, which will bring it down. I'm going short...
What do you think?
Kind regards,
Timon Rossolimos
CEO, MATI Trader
NPH - ShortA bearish engulfing formed on JSE:NPH as well as the crossing down of the stochastic, MACD and EMAs. All of these are signs for a short position.
ABSA - ShortJSE:ABG is looking good for a short position. All 3 momentum indicators have crossed downwards.
REMGRO - Bullish EngulfingA bullish engulfing candle formed on JSE:REM with yesterday's price movement and a long position was triggered today. we are looking at a target around the R153.50 level.
Is the South African Rand forging its own path against the USD?The exotic pair of the U.S. Dollar to South African Rand (USD/ZAR) has not correlated strongly with other USD pairs since this year.
In fact, the USD is down 1.3% against the ZAR since the beginning of the year, all the while, the USD index has been super bullish, up 6.1% YTD.
While performing better than the GBP, EUR, and other major partners, the USD is still trading just under last November’s high. With the seasonal tendency of the USD to weaken over the Northern hemisphere’s summer months in combination with the strong trend-bucking Rand, Is it looking unlikely that the USD will take out those highs over the coming months?
A main reason for the ZAR’s strength is the interest rate hikes emanating from the South African Reserve Bank (SARB). Just last Thursday the SARB raised rates to 4.75% with a 50 basis point hike, which is the highest single increase South Africa has seen since 2016. It appears that the announcement was already priced in to the USDZAR since there was little volatility that followed. Several more aggressive rate hikes are expected from the SARB with at least another 50 basis point rise over 2022, and 100 basis points over 2023.
USDZAR technical perspective
On the charts, we can see the pair is floating just below the high created in November 2021. Just this month we've seen a new range created, to which the Fibonacci tool is anchored. There is also an Elder's Force Index (EFI) indicator on the bottom window. This indicator is concerned with the previous day’s opening and closing prices in relation to volume. Overbought and oversold conditions can be ascertained when the indicator moves above or below the zero line.
At the time of this writing, the USDZAR is sitting above on the 78.6% retracement level, with the EFI below the zero line. If the price is going to take out last November’s high, then we will need to see a sustained support at this level. Ever the contrarian, the USDZAR may disregard the oversold EFI confluence and continue on its path below the 78.6% level..
JSE ALL SHARE 40 - Bull Trap - Inverse Cup and Handle - 25 MayThe JSE ALL SHARE 40 seems to be forming two bearish patterns.
1. An Inverse Cup and Handle where the price is about to break below the brim level sending it down.
2. Bearish pennant which is tricking many traders into a bull trap.
I may be wrong and this might be the bottom but in my 2 decade career, I've learnt to go with the trend until it confirms an end.
So I am going short JSE ALSI 40 today.
