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Writer's pictureLester Davids

JSE Top 40 Index (J200)

Updated: Sep 9, 2023

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Analyst Comment

On Friday, the index reclaimed the previous session's lows which was a move out of an ultra short term oversold level. As per my previous analysis, which highlighted the short term downward trending channel, the price has remained within this channel, capping any upside and halting the attempted bullish reversal. Analyzing the momentum trends, the indicators are currently in a negative alignment. Specifically, analyzing the MACD on multiple timeframes, the following is noted:

  • 3-Day MACD has negative alignment, having shifted below the centre line.

  • 4-Day MACD has negative alignment and is currently shifting below the centre line.

  • 1-Week MACD has negative alignment and is currently shifting below the centre line.

  • 2-Week MACD has negative alignment but remains ABOVE the centre line.

  • The 200-Day Simple Moving Average (SMA) is in an upward trend although it is gradually starting to lose upside momentum.

  • Relative to the 200-DAY SMA, the index is BELOW it. This is a negative development from the perspective of long term momentum.

  • Current Major Resistance: ~68721

  • Current Major Support: ~66371

Short Term Rating

Price vs 8/21-EMA

Price vs 50-EMA

Price vs 200-SMA

Analysis updated at 13h38 on Saturday 09 September 2023


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