Yep, the JSE ALSI 40 is in yet another Twilight Zone. We see sideways motion, prior downtrend and there are sideways indicators. The bearish bias part of it is that price is below 200MA. The RSI is showing lower highs (Bearish divergence). We also see low volume on the buying side. More importantly, we have a flat monday with no conviction... And if the...
It's been a very tough year for swing traders. Go long the market drops. Go short the market rallies. Don't do anything and you save from the burn. But in the bigger scheme of things, it looks like we are in an accumulation phase. The accumulation phase is a period in which smart money (informed and experienced traders or institutional investors) is...
Cup and Handle and Triple Bottom has formed on ALSI over the past two months. Sentiment has been turning bullish with international factors. On the one hand, America has paused interest rate hikes which is leading to a global rally. Four main reasons why a drop in Interest rates causes a market rally namely: 1. Cheaper borrowing for companies 2. Higher...
Nasdaq and Dow Jones have been leading the pack with the indices. And now it looks like the JSE ALSI 40 is about to catch up. It's broken above the downtrend since 1 August 2023 and is showing upside to come. During the process, it's formed an Inverse Head and Shoulders. The right shoulder is not the most attractive with the neckline, but it's the overall...
Once again the imfamous Mr Market JSE has fooled us again... After the 1 year twilight zone of going no where, the price broke below and entered into a BEAR MARKET... However, it lasted literally 7 days before jumping right back into the range... It's not only broken above the downtrend line, the price is testing the support, which could form potentially a...
It's clear that we've had the 1 year anticipated breakout. And it's down. Right now, we are having a slight rally which is known as a Bear Market Rally or a Dead Cat Bounce. The price can go up a day or two but the resistance level will most likely hold. And this will cause the next down leg with the ALSI... First target will be around 61,403
Cup and handle formed on PPC from our last update. The price broke above and went up very nicely. The chances of it going up are still higher but we need to be warned with the JSE ALSI 40 choosing a direction down... 7>21>200 RSI>50 Target remains at R3.55
Potential Inverse C&H is forming on AECI. The price action and momentum looks downwards and it looks like we are going to see some chop before the downside. Once the handle forms and shows that price doesn't want to break above the handle, we will see panic selling sending the price to the 200 MA. 7 to cross 21 Price to go to 200MA Target R91.73 ABOUT THE...
Rectangle pattern formed on Raubes. The price still hasn't broken up or down. But the signs are more bullish despite the negative sentiment with the JSE ALSI... However, it is a waiting game until there is a solid breakout to the upside. Other indicators show up momentum... 7>21>200 RSI>50 Target R40.10
JSE ALSI 40 is currently testing its November 2022 Support (which was resistance). The price will need to break below to get traction to the downside. It can take a few days and for bulls and bears to fight this one. But we'll see. If it breaks down there is a decent target 59,369/ My bias is indeed down, but there does need a strong catalyst to break this.
Bearish Symmetrical Triangle has been in the making since 17 November 2022... However, the last few months, the JSE has just not been able to break above it's most recent declination resistance. Instead, it's for the first time, broken below the formation - showing the bears are really starting to win. How long will it last we don't know. But it looks like the...
M Formation has formed on the JSE ALSI 40. While the SP500, Dow Jones and Nasdaq have been going up this year, it strangely looks like the JSE ALSI 40 has broken it's correlation. Not only has America NOT been leading the JSE, it seems like the problems (economically and politically and socially) are showing signs for the country. Now, either we get another...
Symmetrical Triangle formed on ALSI and the darn price has just been moving within it for months on end. Any JSE short term trader is most likely struggling with the whipsaws. If one is not diversified in Forex or Indices - I don't know how they are making an income this year. Regardless, the price has broken below the triangle and below the 200MA for the...
The JSE ALSI 40 is retesting the support from the breakout from the broadening formation... We need this level to hold to continue the upside. America got downgraded from AAA to AA+. This might cause turblence with the upside to come. We'll have to let the panic settle and for the bulls to continue fighting for the upside support. I'll let you know.
This week I remain an optimist that we will see a higher low with the JSE. And it will soon (not sure when) break up and out of the long extended Vuvuzela formation. Once it does my first short term target will be to 75,000. Every year it seems the JSE is testing traders more and more. Some fundamental news: Someone asked about what happens with the Interest...
Well, well, well, we've identified the tumultuous and monotonous pattern on the chart finally. It's known as a Broadening Triangle or what I call a Vuvuzela Formation. The price diverges instead of converges in a triangle pattern... Now this can be a continuation or a reversal pattern. It all depends on the breakout. Looking at the D&S and liquidity it...
Hi guys, this could be a concern. JSE ALSI 40 has been forming a broadening pattern (Vuvuzela) since 12 April 2023. Now with these patterns, they can break any direction... If we make a higher low, the chance of the price breaking up is higher. Then we can expect the price to finally break up and out and head to 75,000 as the first target. As this is...
Inverse Head and Shoulders has formed on the 15m. Downtrend is also abolished. We can get a test at the new support before it rallies on up to 71,416. This might give a conservative entry level for bulls, before the next leg up. The daily trend however, needs a lot more upside before we get into a Bull trend (but hey it's a start)