top of page

JSE Relative Sector Summaries

  • Writer: Lester Davids
    Lester Davids
  • Apr 3
  • 4 min read

Trade JSE Shares with Unum Capital.

To get started, email lester@unum.co.za


*Data as of Friday, 04 April (pre-market).


Key Takeaways:


  • Technology is the strongest sector, showing consistent bullish momentum across all timeframes.

  • Gold Miners are consistently overbought, indicating a potential sell opportunity.

  • Many sectors (Miners, Banks, Insurers, Consumer Staples, Consumer Discretionary, Healthcare, Paper & Pulp, Chemicals) exhibit short-term oversold conditions, which could lead to temporary bounces. However, the overarching trend in most of these sectors is bearish.

  • Telecoms show long-term strength but have a neutral short-term outlook.

  • Luxury Goods are neutral across all timeframes, indicating a lack of clear direction.



Legend Interpretation:

  • Strong: Generally a buy signal.

  • Neutral: Hold, or be cautious.

  • Weak: Generally a sell signal.

  • High Bearish Momentum/Approaching Oversold: Potential for a short-term bounce or reversal, but still bearish overall. Consider buying cautiously for short-term gains, but be aware of the overall weakness.

  • High Bullish Momentum/Approaching Overbought: Potential for a pullback or correction. Consider selling or taking profits, as the bullish momentum might not be sustainable.

  • Oversold: Potential for a short-term bounce or reversal. Consider buying for short-term gains.

  • Overbought: Potential for a pullback or correction. Consider selling or taking profits.


JSE Sector Analysis:


1. Technology vs Top 40

  • Short Term: Strong (Buy)

  • Medium Term: Strong (Buy)

  • Long Term: Strong (Buy)

  • Overall: Strong Buy. Consistent strength across all timeframes. This sector is exhibiting clear bullish momentum and is a strong candidate for investment.


2. Miners vs Top 40

  • Short Term: Weak (Sell)

  • Medium Term: Oversold (Potential Buy for Short-Term Bounce)

  • Long Term: High Bearish Momentum/Approaching Oversold (Potential Buy for Short-Term Bounce)

  • Overall: Weak with Short-Term Bounce Potential. While long and medium terms suggest potential for a bounce due to oversold conditions, the short-term weakness indicates caution. Consider short-term trades only if you see confirmation of a reversal.


3. Banks vs Top 40

  • Short Term: Oversold (Potential Buy for Short-Term Bounce)

  • Medium Term: Weak (Sell)

  • Long Term: Weak (Sell)

  • Overall: Weak with Short-Term Bounce Potential. Similar to Miners, the oversold short-term condition might offer a brief trading opportunity, but the overall trend is bearish.


4. Insurers vs Top 40

  • Short Term: High Bearish Momentum/Approaching Oversold (Potential Buy for Short-Term Bounce)

  • Medium Term: Weak (Sell)

  • Long Term: Neutral (Hold/Cautious)

  • Overall: Weak with Short-Term Bounce Potential. Again, the short-term oversold condition might offer a trade, but the medium-term weakness and neutral long-term outlook suggest caution.


5. Gold Miners vs Top 40

  • Short Term: Overbought (Sell)

  • Medium Term: Overbought (Sell)

  • Long Term: High Bullish Momentum/Approaching Overbought (Potential Sell)

  • Overall: Sell. The sector is consistently overbought across all timeframes, indicating a high risk of a pullback or correction. It's advisable to take profits or avoid this sector.


6. Platinum Miners vs Top 40

  • Short Term: Weak (Sell)

  • Medium Term: Neutral (Hold/Cautious)

  • Long Term: Neutral (Hold/Cautious)

  • Overall: Weak. The short-term weakness is the dominant factor. The neutral medium and long terms don't offer enough support to counteract the bearish short-term signal.


7. Consumer Staples vs Top 40

  • Short Term: High Bearish Momentum/Approaching Oversold (Potential Buy for Short-Term Bounce)

  • Medium Term: Oversold (Potential Buy for Short-Term Bounce)

  • Long Term: Weak (Sell)

  • Overall: Weak with Short-Term Bounce Potential. The short and medium terms suggest a possible bounce, but the long-term weakness indicates a need for caution.


8. Consumer Disc. vs Top 40

  • Short Term: High Bearish Momentum/Approaching Oversold (Potential Buy for Short-Term Bounce)

  • Medium Term: Oversold (Potential Buy for Short-Term Bounce)

  • Long Term: Weak (Sell)

  • Overall: Weak with Short-Term Bounce Potential. Similar to Consumer Staples, the short-term oversold conditions might provide trading opportunities, but the long-term weakness is a concern.


9. Healthcare vs Top 40

  • Short Term: Weak (Sell)

  • Medium Term: Oversold (Potential Buy for Short-Term Bounce)

  • Long Term: High Bearish Momentum/Approaching Oversold (Potential Buy for Short-Term Bounce)

  • Overall: Weak with Short-Term Bounce Potential. The short-term weakness is the primary concern. The oversold conditions in the medium and long term might offer a temporary reprieve, but the overall trend is bearish.


10. Hospitals vs Top 40

  • Short Term: Weak (Sell)

  • Medium Term: High Bearish Momentum/Approaching Oversold (Potential Buy for Short-Term Bounce)

  • Long Term: Weak (Sell)

  • Overall: Weak. The short and long-term weakness outweigh the potential for a bounce in the medium term.


11. Coal Miners vs Top 40

  • Short Term: Weak (Sell)

  • Medium Term: High Bearish Momentum/Approaching Oversold (Potential Buy for Short-Term Bounce)

  • Long Term: Weak (Sell)

  • Overall: Weak. Similar to Hospitals, the short and long-term weakness dominate.


12. Telecoms vs Top 40

  • Short Term: Neutral (Hold/Cautious)

  • Medium Term: Strong (Buy)

  • Long Term: Strong (Buy)

  • Overall: Neutral with Long-Term Strength. While the short-term is neutral, the strong medium and long-term outlook suggests potential for growth. However, the short-term neutrality warrants careful monitoring.


13. Paper & Pulp vs Top 40

  • Short Term: Oversold (Potential Buy for Short-Term Bounce)

  • Medium Term: High Bearish Momentum/Approaching Oversold (Potential Buy for Short-Term Bounce)

  • Long Term: Oversold (Potential Buy for Short-Term Bounce)

  • Overall: Potential for Short-Term Bounce. All timeframes indicate oversold conditions, suggesting a potential bounce. However, the lack of strong bullish signals means this should be considered a short-term trade only.


14. Chemicals vs Top 40

  • Short Term: Weak (Sell)

  • Medium Term: Weak (Sell)

  • Long Term: Oversold (Potential Buy for Short-Term Bounce)

  • Overall: Weak with Potential for Short-Term Bounce. The short and medium-term weakness is concerning. The long-term oversold condition might offer a trading opportunity, but the overall trend is bearish.


15. Luxury Goods vs Top 40

  • Short Term: Neutral (Hold/Cautious)

  • Medium Term: Neutral (Hold/Cautious)

  • Long Term: Neutral (Hold/Cautious)

  • Overall: Neutral. This sector shows no clear directional bias. It's best to hold or avoid until a clearer trend emerges.


Lester Davids

Analyst: Unum Capital

Comments

bottom of page