This week has seen the largest down bar. Volatility to the downside has been increasing since 2015 and the clear change in character (CoC) last week could indicate a lot more downside to come. We have been following what has been looking like distribution for some time and this move could be the markdown in phase D. After a possible pause at the bottom of the...
The JSE Allshare came off resistance, turning down from overbought levels. Round numbers for a 2:1 reward to risk trade - Short at 57000 with a stop at 58000 and a target of 55000.
FX:USDZAR After Moody downgrade whole world expected for ZAR to weaken against USD but exactly opposite happens. Rand is currently 1% stronger vs Majors. This is great lesson that one should always expect unexpected in the markets. Pair star making small flat bottom triangle inside big flat top triangle. All in all market is currently sideways, trading at the...
The Top 40 has previously found support at the yearly pivot point. After a rally, there has been a rejection of the 200Day MA. Volume is decreasing on rallies and increasing on declines indicating the selling pressure. It does not seem that the 200Day MA will hold again.
TOP40 has closed under the 200ma and formed a massive double top which has a possible downside target of 5000 points. Price will likely go test the 200ma level again before continuing a move down.
Today we have seen a high volume bar with a small range indicating effort without response. Some demand has entered the market and a rally is possibly on the cards this week.
JSE:J200 Roll over on hourly chart. Trying to hold neckline for double top but will be very difficult.
TOP40 has closed under the 200ma and formed a massive double top which has a possible downside target of 5000 points. Price will likely go test the 200ma level again before continuing a move down.
JSE:J211 Trading in well defined up channel. Break bellow will bring more weakness.
After forming a top and breaking below the TR formed we have now seen a back up to the range. This gives another opportunity to go short.
Following on from last weeks post the market has formed a top and broke out of the short distribution range formed at the highs. Due to the short TR we need to be conservative with the targets.
Last week there was some high volume (effort) but with no progress in price (response). This indicates that some selling is taking place. After breaking the channel there has been a low volume pullback. Now after a retest, there is some volume and now I am expecting a decline in the next week.
JSE:LHC has broken through a descending resistance line which is also at a support level. I will enter a log position if it breaks through the fractal which is looking quite promising.
I have decided to have a deeper look into the technical structure of our top40 index which should give you a better technical view of what to expect from our market. Firstly interesting to note is that price has rejected off the 61.8% fib retracement using the last swing high and low that we saw between August and October last year. We have seen numerous topping...
After a Change of Character (CoC) and major Sign of Weakness (SoW) the JSE Top 40 has been seen the start of a smaller trading range (TR). Price is now approaching the top of the TR (Round number 49000) with confluence with the 200 Day SMA and the 2019 Yearly Pivot Point. The Rally is seen on lower volume than the decline and negative divergence with the RSI....
These graphs are the relative strength comparison of the Resource, Industrial and Financial Index with the Top 40. This indicates that momentum since the beginning of 2018 is continuing in 2019. The 200 Day MA (or 40 Week MA) of the relative strength sow an increasing trend in the Resources and Financial Indices, while the Industrial Index is sharply declining....
Flat top triangle -Wait for 9050 break on daily. Targets 99, 106