JSE Top 40 Index: Retreating From Medium Term Inflection Point

Trade the Top 40 Index with Unum Capital.

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Our initial view considered the rising trend line resistance as an inflection point for the index i.e. a potential resistance zone within the upward trend. The price did not trade into that level but has instead rolled over earlier than expected, with the selling pressure now evident by the large intraday decline. The index has shifted to below the 50-day, approaching the lower boundary of the rising channel. (Comment as of Friday 04 April, Post-Market Close).

See the previous post below:

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Previous Post (Thursday 20 March at 14h44): Trading Top 40: Have You Considered This Angle?

The upper boundary of the channel represents a potential medium term resistance range (i.e. a level at which the price could trade into, then consolidate. If it becomes overbought on a weekly basis, this could coincide with the potential for a retracement.

Lester Davids

Analyst: Unum Capital