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JSE on a knife-edge

Aug 22 2010 12:14 Frans de Klerk

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Johannesburg - Over the past week share prices on the JSE made an effort at recovery following the price corrections, but the run that lasted for days was wiped out by a single day's profit-taking – and the market is again moving into oversold territory.

This creates opportunity for new recovery runs, but if the efforts are so weak it would be a negative signal.

Should the all-share index consolidate at 27 200 points, it could possibly test the danger level of 26 000 for the overall market in the foreseeable future.

Two shares are catching the eye:

Standard Bank Group [JSE:SBK]: With the recent correction in the prices of banking shares over the past three weeks Standard Bank’s share price has lost almost 13% of its value.

On its daily graph it is now approaching important support levels at R102 and even R100, which offer a speculative buying opportunity.

Speculators can buy their shares at the current price levels, anticipating a run after R110. A stop loss of R95 would contain losses.

Truworths International [JSE:TRU]: Truworths’ share price has lifted almost 32% since January this year. The short-term support line A on the daily graph for the past week is a technical “sell” signal for the short term.

Medium-term investors should become worried when the share price moves below R52, because the next support level below that is at R50 and then at R44.  

- Sake24.com

For business news in Afrikaans, go to www.sake24.com.

 
 
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