JSE Resources via $STXRES
Monthly Chart: 2 rebounds off the prior breakout/resistance level.
Daily: 'neutral', from previously 'oversold'
Weekly: 'neutral', from previously 'oversold'
Monthly: 'neutral', from previously 'strong'.
Channel support on the Satrix Resources ETF seemed to have held. Possible target could be the top of the channel. I have a position. Be nimble in these volatile markets.
Lesson to all (including myself). In volatile markets adhere to what TA is telling you. The fake break (circle) indicated fading strength. This was followed by huge weakness in a very short period of time. It looks like we're on a bit of support right now. It would be interesting to see if support hold.
Might have something to do with the expectation that some resources might actually do well in a hawkish Fed environment (rising interest rates). Gold, silver and copper are my resources of choice for a higher - inflation, - interest rate environment.
An extract from today's report:
Satrix Resources Portfolio (STXRES, 6725c): The short term overhead resistance (highlighted in last week Monday's note) held, with a strong rejection on Wednesday and follow-through on Thursday. The downside gap at 6400c remains a possibility to be filled IF the ultra short term incline (blue line) is breached.
To access my full...
After a flat top formation, a drop followed and we are now back into the longer term upward channel. The bottom of this channel could be a point of interest, but until then it's maybe best to sit on the sidelines, or risk being run over by this train.
The Satrix resource ETF has been trading around a defined uptrend for a couple of years now. Recently it broke out of the range and retested the upper band of the range before moving higher again. The upper band has been tested once more and you have to wonder if the recent high will be challenged again 7440. Large economies seem to be running hot at the moment...
The JSE Resources Index (J210) is the one potential light in the tunnel. We have been in an uptrend since 2016 and even after the covid drop recovered to top of the upward stride. Recently we have seen a pullback from the overbought line on low volume. So now we start looking for when the price reaches the oversold line to take opportunities for the next leg up....
After spending a brief period of time outside of this very bullish upward sloping channel it has now broken back into this channel. A test of the bottom of this channel is possible. Upper channel line will act as resistance moving forward. Bottom of line will act as support.
- The ETF has been in a solid uptrend since the lows in March 2020
- Price is breaking out through horizontal resistance (on volume)
- Opportunity to jump on the momentum with a stop loss below the last swing low or break of trend
-- MANAGE YOUR RISK - -
Disclaimer: All ideas are my opinion and should not be taken as financial advice.
JSE:STXFIN
After a break out of a multi year channel and losing 37% out of that break, it made an almost perfect V - shape 60%+ recovery to end up back into the channel. If this channel hold, the next best assumption is that we will again start moving higher into this channel going into the future.
The drop in resources has been unexpected to me (See posts below). I would expect gold stocks to improve in a risk-off environment. However, this has not happened. The theory seems to be that due to the selloff in other stocks large interest has also been caught on the wrong side of trades and have had margin calls and needed to raise cash quickly. They have done...
After testing the yearly pivot point the resources index is continuing with the upward trend. Negative divergence and some volume in the market indicates that there were buyers buying into weakness during the test.
