The price action seems to be at the start of wave 5 out of the Elliott wave analysis.
The 200-month appears to be acting as major support.
The conflux of the 200-day and 200-week, which is close to the 23.6% Fibonacci retracement level might act as a key indicator of upside price potential.
Wave 5 begins after the completion of Wave 4, which is a corrective wave....
Resource are very likely the place to be over the medium term. Satrix Resources which is a basket of the biggest resource stocks on the JSE is bouncing off a massive level of previous long term support which has now become support (Change of Polarity). This is a great area to accumulate for the long term in my opinion. Will be happy to review after a few months...
Change of polarity here on the longer term satrix resources chart. I believe resources are the place to be in the current environment and this is a fantastic entry point to catch the next move higher
Maybe time to relook at an entry price if support holds.
Support held twice before and if it can do it for a third time, 70 could be on the cards again
Giving this another day or two to confirm support
Uptrend dating back to 2016 break on the weekly chart.
Support at 5850, and if that does not hold, then next support around 5200.
The last time this uptrend was broken was during COVID.
Ominous looking chart
SATRIX RESI PORTOFOLIO
M- formation has been confirmed and we have a price breakout to the down side:
The MAS are 7<21<200 (Bear)
RSI <50 and a Target price of R47.82
SATRIX RESI PORTOFOLIO – the ETF
Satrix Resi Portfolio is an exchange-traded fund (ETF) offered by Satrix, a leading provider of index-tracking products in South Africa. The Satrix Resi Portfolio...
STXRES ETF has returned to a previous consolidation zone but is now lower then the March swing low and 200 wma .
Does the R58.50 - R61.50 horizontal support zone hold for the 3rd time, or do we break lower this time? A break below targets R54 initially. Alternatively, we start seeing some bullish support for a possible reversal.
I will be keeping this one on the...
I will be keeping a close eye on the STXRES this week.
R67 is a key level that was broken when price moved out of the consolidation period last year Jun-Oct 22
Ideally bulls hold/consolidate at this level and build a base to rally off in the future... Failure here opens R62 and R58 as likely targets.
Using the Satrix Resources chart, you can see just how much pressure the index is under. Having clearly broken below the 50 day and the 200 day moving average, the BEARS are now in control. RSI is weak and momentum is building more to the downside, I expect the index to test major support in the coming week or so at around R60.00. That relates to about 10%...
Chart looks very compelling for a long bias.
Today's CPI data will be the deciding factor to whether this move is legit, or we fall back into range ...
Important to note that the resistance or breakzone lines up with the yearly pivot .
This channel is holding up pretty well with the top and the bottom of the channel being tested multiple times.
Best case scenario is support holds up once again and and we test the top of the channel
Worst case is this ends up being a bear flag, support breaks to the downside and we test support levels lower down (blue lines)
If you go long, impliment a stop...
Satrix resource ETF is currently trading in a channel, but after a rejection at the SMMA 40 this could end up becoming a bear flag channel.
Watch out for a possible break of this channel.
Target area if this flag breaks is 5123-4736
Watching. No position.
After breaking out of the downward sloping channel we are now testing this channel line again.
Adding some as I think/hope this line will act as support
Target if this support line holds is R67,50.
Small position. Be nimble
STXRES reached the top of what looks like a descending channel. Some resistance is expected. Will the bottom of the channel be tested again or could we see a break of the upper channel resistance line ? Neutral right now.
