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Writer's picturePeet Serfontein

Analyst Thoughts: Top 40 - The Bigger Picture

RS CORRECTION MATURING WITH MEANINGFUL GAIN POTENTIAL


  • The prevailing perspective suggests an ongoing consolidation phase RS, anticipated to lead to gains reaching at least T1. The objective is to assess the likelihood of intermediate stages concluding the RS trend.

  • Current Outlook: Recent price movements overlapping with R levels indicate diminishing downward pressure, signalling the development of a mature PQ pattern.

  • Projected Scenario: The expectation is for the downward trend from R to S2 and ultimately to S to complete.

  • Alternative View: The RS correction might also conclude with an RK triangle pattern. Verification of this scenario depends on whether mid-term price activities persist within the triangle's boundaries.

  • Important Levels:

    • Breaching Q would undermine the optimistic outlook.

    • The K/S1 level is crucial for the RS triangle's integrity.

    • Surpassing R would trigger a more significant bullish trend towards T1 and possibly further.

  • Conviction: Medium to high regarding the overarching analysis.

 




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