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Writer's picturePeet Serfontein

Analyst thoughts: Top 40 Medium-term

VIEW ADJUSTED: 68700 TO 73800 TRIANGLE PATTERN CONTINUATION

  • The recent sharp bearish reversal off R0 implies that the P*Q* consolidation phase is incomplete and should continue to define price action. This has postponed the illustrated bull trend to T1 and T2.

  • The general downside towards Q* could complete the P*Q* triangle to eventually be followed by the illustrated upside to T2.

  • Indecision and ad hoc overlapping price action are becoming increasingly likely as the P*/Q* pattern matures.

  • The important adjusted levels are P* and Q*.

Target and Re-assessment Levels:

Important Levels: P* and Q*

Primary Trend and Target Levels: P*/Q* ranging, followed by gains to T1 and T2.

Monthly Range: R0/S2

Prevailing Trend and Target Levels: Downside off R0 to S2

Technical Rating: Medium


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