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Writer's picturePeet Serfontein

Analyst thoughts: Top 40 index

VIEW RETAINED: THE BLUE PQ TRIANGLE PATTERN IS PART OF THE PRIMARY BULL TREND

  • The illustrated view of a PQ consolidation, followed by the eventual return of the primary bull trend to T1 and beyond, is retained.

  • The expected upside off S0/Q to P is in the latter stages of forming phase D. The final phase E to S0 and Q should be activated on a breach of R0.

  • Triangle patterns are complex and can have shortened legs and even interim trend line breaches. Current market action is typical of these types of patterns.

  • R1* and S1* are the pivotal levels to allow for ad hoc moves.

Target and re-assessment levels

Important levels: R1* and S1*

Primary trend: PQ ranging, followed by gains to T1*

Prevailing trend: Downside off P to S0

Monthly range: P/S0

Technical rating: Medium







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