top of page
Writer's pictureLester Davids

JSE Top 40 Index: Here's What You Should Know

Trade the Top 40 Index with Unum Capital


Update:

Trading in a tight consolidation range

Rejected into the declining 21-day EMA

Rejected into the declining 75-day EMA

Shifting to and consolidating below a flat 21-week EMA

Deteriorating candle structure at short term support

Above a rising 50-week EMA

Above a rising 200-SMA SMA



 

Previous Post: TRADING The JSE Top 40 Index


On 27 September 2024, research highlighted the index trading in a short term overbought range, from which we subsequently saw a retracement and unwind from these overbought conditions. Over the 3 months, the index has traded in a sideways range, reflecting a period of distribution among several large and mid cap constituents. The following key developments are also noted:


  • The price has shifted below it's 50-day EMA (the 50-day EMA has also lost it's upside momentum and is turning lower).

  • The price is breaking below it's 21-week EMA - a level which previous held as support on retracements.

  • The price continues to trade above it's 50-week EMA, which is sloping upwards. This is a positive development.

  • The price continues to trade above it's 200-day SMA, which is sloping upwards. This is a positive development.

  • The 50-week EMA and 200-day SMA are currently aligned. This range could act as a level of support on a further retracement. Do however note that the price has the ability to overshoot this range and test the swing low of 11 September at 72991.



Lester Davids

Analyst: Unum Capital

10 views0 comments

Recent Posts

See All

Comments


bottom of page