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Writer's picturePeet Serfontein

Analyst thoughts: Top 40 Medium-term

VIEW RETAINED FOR THE PRICE ACTION TO TEST THE MEDIUM-TERM BEARISH TARGET LEVELS

  • The general view of a W bear phase within the PQ consolidation has materialised as the market tests important target support.

  • The expected downside to Q*/S1 cluster support could have completed W. There is an increased chance of a medium-term bottom forming with an upside to R1 and R2.

  • Further XY phases would eventually result in a re–emergence of the bull trend to T1 and T2.

  • The pivotal level for the illustrated bullish bias remains at Q*/S1 cluster support. A definite breach of this level will activate the downside towards S2.

  • R0 is the activation level for the X upside.

Target and Re-assessment Levels:

Important Levels: R0*/S1*

Primary Trend and Target Levels: Gains off Q* to P, as part of PQ ranging

Monthly Range: R1*/S1*

Prevailing Trend and Target Levels: Gains off S1 to R1

Technical Rating: Medium



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