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TECHNICAL ANALYSIS: Fini 15 testing breakout level good news for banks

Jul 24 2018 12:32
Colin Abrams

Having reached its downside target, the JSE Financial 15 index ('fini 15') is on the verge of a potential upside breakout, which will be good news for large-cap financial stocks, especially banks.

JSE Financial 15 Index – Testing breakout level

Recommendation: Buy FINDI stocks

Current Trend: Short-term sideways. Med-term down, but oversold. Long-term sideways.

Strategy: Buy on a breakout above line 3.


Chart Setup: The fini 15 index reached its downside target from a head and shoulders pattern (shown on its line chart when we last showed it). It has rallied from there and is currently moving up through line 2 resistance, and testing line 3 resistance (16 700).

  • Its short-term Stochastic (on top) is not yet overbought and can more higher.

Strategy Details: Buy large-cap financial stocks on a close above line 3 i.e. a close above 16 700 on this index.

Target: Once it closes above line 3, look for a move to 18 200, based on its recent consolidation pattern (which is an inverse head and shoulder-type pattern).

Stop-loss: A close below 15 800 (using this index as a guide for large-cap financial stocks). This index was at 16 640 at the time of writing.

  • Colin Abrams is an independent technical analyst. To subscribe to more recommendations by the author, or attend trading courses, please go to

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equities  |  jse  |  markets


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