Thursday 21 November 2024 (Time: Pre-Market)
Last week Thursday morning (pre-market) the ultra short term high bearish momentum regime was recognized by the model reading, with the short term outlook being that traders should wait for prices to stabilize as aggressive selling was underway. Subsequently, the index stabilized, with the price slowing it's downward momentum with the development of two doji candles (see insert on slide below). The medium term outlook (2 to 4 weeks) assessed the probability of a small rebound which has unfolded over the course of this week. From my vantage point, these are the key levels: Both the 21-day EMA and 50-day EMA reflect a neutral to bearish trend, which is where the index continues to find resistance on rallies however, the candle structure is improving, reflecting current control by the bulls.
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Tuesday 19 November 2024 (Time: Pre-Market)
Code: J200
Thursday and Friday's candle structures (both doji's) reflected indecision and a slowdown following the downward trend from previous overbought levels. On Monday (yesterday) we saw a small rebound (60bps) which was curtailed by the declining 8-day EMA however, any further rally could also be halted by the 21 day, which is trending lower, as well as the 50-day EMA which has gradually started to turn down.
The slide below was included in my report, "The Sum of the Charts" dated Monday, 18 November 2024. Clients of Unum Capital can access the report by sending a email to lester@unum.co.za
Lester Davids
Analyst: Unum Capital
The Sum of the Charts is a comprehensive report (PDF format), providing valuable insights for traders looking to capitalize on opportunities as well as manage risk.
Lester Davids
Analyst: Unum Capital
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