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Johannesburg - The profits from the Christmas run-up on the JSE’s all-share index have been wiped out now that the index has fallen below the psychologically important level of 32 000.
The result is that the technical review of the index’s prospects has changed from positive to “uncertain”.
As long as the index consolidates below 32 755, this uncertainty will persist.
If the index consolidates below 31 680 for a couple of days, investors can consider the possibility of profit-taking – and this could cause the index to drop to 31 366 or even 31 000.
ArcelorMittal SA [JSE:ACL]
The company's share price movements have formed a symmetrical triangle on the daily graph, but the price has now broken upwards out of the triangle and consolidated above R81.60.
The South African market was hammered during the past week, but not ArcelorMittal. This is technically regarded as positive.
Any pull-back to around R83 could be regarded as an opportunity to buy the share.
The share has already gone too far for a speculative buy, but medium- to long-term investors could use a stop-loss of R72 to limit losses.
Barloworld [JSE:BAW]
Judging from Barloworld’s daily graph of its share price, the counter is still in a bull phase, but there are warning signals.
The support level may be on the point of collapsing.
Barloworld’s share price has had a healthy rise, and the first danger signal will be if the share price consolidates below R66, and especially R65.
A fall to below these levels could force the share price down to R63 and R60.
For speculators: the easy money has been made. For medium- and long-term investors: continue holding the share, but keep an eye on the above support line and levels.
- Sake24
For business news in Afrikaans, go to www.sake24.com.
The result is that the technical review of the index’s prospects has changed from positive to “uncertain”.
As long as the index consolidates below 32 755, this uncertainty will persist.
If the index consolidates below 31 680 for a couple of days, investors can consider the possibility of profit-taking – and this could cause the index to drop to 31 366 or even 31 000.
ArcelorMittal SA [JSE:ACL]
The company's share price movements have formed a symmetrical triangle on the daily graph, but the price has now broken upwards out of the triangle and consolidated above R81.60.
The South African market was hammered during the past week, but not ArcelorMittal. This is technically regarded as positive.
Any pull-back to around R83 could be regarded as an opportunity to buy the share.
The share has already gone too far for a speculative buy, but medium- to long-term investors could use a stop-loss of R72 to limit losses.
Barloworld [JSE:BAW]
Judging from Barloworld’s daily graph of its share price, the counter is still in a bull phase, but there are warning signals.
The support level may be on the point of collapsing.
Barloworld’s share price has had a healthy rise, and the first danger signal will be if the share price consolidates below R66, and especially R65.
A fall to below these levels could force the share price down to R63 and R60.
For speculators: the easy money has been made. For medium- and long-term investors: continue holding the share, but keep an eye on the above support line and levels.
- Sake24
For business news in Afrikaans, go to www.sake24.com.
