The JSE All Share index has been in a volatile sideways range in recent months but has established a solid support zone and has moved up from that support zone in recent days. It is now heading towards resistance levels higher up.
JSE All-Share index – Solid support level holding [Signals done on alsi future]
Recommendation: Hold long.
Current Trend: Short- and med-term sideways. Long-term sideways to up.
Strategy: Hold current long position. Take profits into line 3.
(Daily)
Chart Setup: Last week the index retested its critical support zone of line/s 1. It gave a classic bullish reversal candle off (as circled) for going long. I'm looking for more short-term upside.
- Its short-term Stochastic is overbought, which is one concern. It’s weekly Stochastic though (not shown) is not overbought yet.
Strategy Details: Hold current long position. Take profits at/near line 3 (58 490 - 58 700).
Target: To line 3 at 58 490 - 58 700 to take profits. Further resistance is at line 4 at 59 180. A breakout beyond there will be very significant (and buyable).
- To the downside, support is still the zone of lines 1 (55 000 - 54 780), then line 2 at 54 430.
Stop-loss: A close below 56 140. Take partial profits at 58 080, and raise the stop from there to a breaking of its prior two-day low.
- Colin Abrams is an independent technical analyst. To subscribe to more recommendations by the author, or attend trading courses, please go to www.themarket.co.za
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