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*Data as of Friday, 28 March (pre-market).
Summary:
Key to Understanding the Analysis:
Color Coding: The color coding in the table helps visualize the strength (green), weakness (red), or neutrality (yellow/orange) of each sector.
Momentum & Overbought/Oversold: These indicators provide additional context to the strength or weakness. High bullish momentum approaching overbought suggests a potential pullback, while high bearish momentum approaching oversold suggests a potential bounce.
Timeframe Weighting: Short-term changes are given the most importance, followed by medium-term, and then long-term.
Sector-by-Sector Analysis:
1. Technology vs. Top 40
Short-term: Neutral
Medium-term: Neutral
Long-term: Strong
Overall: Slightly Positive. The strong long-term trend suggests potential, but the neutral short and medium terms indicate a lack of immediate momentum.
Action: Hold with a potential buy if short/medium term indicators improve.
2. Miners vs. Top 40
Short-term: Weak
Medium-term: Oversold (likely a temporary bounce potential)
Long-term: High Bearish Momentum/Approaching Oversold
Overall: Negative. The weak short-term trend and long-term bearish momentum outweigh the potential bounce from oversold conditions in the medium term.
Action: Sell or avoid.
3. Banks vs. Top 40
Short-term: Strong
Medium-term: Neutral
Long-term: Neutral
Overall: Positive. The strong short-term trend is a significant positive indicator.
4. Insurers vs. Top 40
Short-term: Neutral
Medium-term: Neutral
Long-term: Neutral
Overall: Neutral. No strong signals in any timeframe.
5. Gold Miners vs. Top 40
Short-term: Strong
Medium-term: Strong
Long-term: Strong
Overall: Very Positive. Strong across all timeframes.
6. Platinum Miners vs. Top 40
Short-term: Strong
Medium-term: Strong
Long-term: Neutral
Overall: Positive. Strong short and medium-term trends are positive.
7. Consumer Staples vs. Top 40
Short-term: Neutral
Medium-term: Oversold (likely a temporary bounce potential)
Long-term: Weak
Overall: Slightly Negative. The weak long-term trend offsets the potential bounce from oversold conditions in the medium term.
8. Consumer Disc. vs. Top 40
Short-term: Neutral
Medium-term: Oversold (likely a temporary bounce potential)
Long-term: Neutral
Overall: Neutral with a potential bounce.
9. Healthcare vs. Top 40
Short-term: High Bearish Momentum/Approaching Oversold
Medium-term: Oversold
Long-term: High Bearish Momentum/Approaching Oversold
Overall: Negative. Strong bearish momentum across all timeframes.
10. Hospitals vs. Top 40
Short-term: Neutral
Medium-term: Weak
Long-term: Weak
Overall: Negative. Weak trends in medium and long terms.
11. Coal Miners vs. Top 40
Short-term: High Bearish Momentum/Approaching Oversold
Medium-term: High Bearish Momentum/Approaching Oversold
Long-term: High Bearish Momentum/Approaching Oversold
Overall: Very Negative. Strong bearish momentum across all timeframes.
12. Telecoms vs. Top 40
Short-term: Strong
Medium-term: Strong
Long-term: Strong
Overall: Very Positive. Strong across all timeframes.
13. Paper & Pulp vs. Top 40
Short-term: Oversold
Medium-term: Weak
Long-term: High Bearish Momentum/Approaching Oversold
Overall: Negative. Long-term bearish momentum and medium-term weakness outweigh the oversold short-term condition.
14. Chemicals vs. Top 40
Short-term: Weak
Medium-term: Weak
Long-term: Oversold
Overall: Negative. Weak trends across all timeframes.
Action: Sell or avoid.
15. Luxury Goods vs. Top 40
Short-term: High Bearish Momentum/Approaching Oversold
Medium-term: Neutral
Long-term: Neutral
Overall: Slightly Negative. The short-term bearish momentum is a concern.
Lester Davids
Analyst: Unum Capital
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