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Writer's picturePeet Serfontein

Analyst Thoughts - Top 40 Medium-term

THE VIEW IS RETAINED FOR REALISED GAINS TO 69 200. WHAT CAN WE EXPECT NEXT?

  • Completion of both the expected LM wedge pattern and W,X,Y bullish correction results in an interim neutral outlook with two medium-term alternatives:

1. The preferred view (red illustration) is for a medium-term R0/S1 consolidation with an eventual break out of the PQ correction and upside to T1


2. LM could have been a trend-ending wedge with more immediate bullish potential on a correction to S0* (black illustration). W,X,Y would then be the beginning of an impulsive trend (1,2,3,4,5).


Where to now?

  • S0* is pivotal. Holding above this level over time will favour Alternative 2, while a breach will activate Alternative 1.

  • A breach of R2* will extend upside to P. A break of S2* will negate the illustrated view.

Target and Re-assessment Levels:

Important Levels: S0*

Primary Trend: R0/S1 consolidation, followed by eventual gains to T1.

Monthly Range: R0/S0*

Current Trend and Target Levels: R0/S0* ranging

Technical Rating: Medium



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