TECHNICAL ANALYSIS: JSE All-Share index establishes solid support zone | Fin24
 
  • Last minute

    Theresa May has planned a last minute Brussels dash to save the Brexit summit.

  • Waiting to let go

    PIC boss Dan Matjila has offered to step down, but only in April 2019.

  • Eskom capacity

    Eskom faces structural problems - its ability to supply power is at its lowest in years.

Loading...

TECHNICAL ANALYSIS: JSE All-Share index establishes solid support zone

Jul 06 2018 12:36
Colin Abrams

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.
Capture

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

Disclaimer: Fin24 cannot be held liable for any investment decisions made based on the advice given by independent financial service providers. Under the ECT Act and to the fullest extent possible under the applicable law, Fin24 disclaims all responsibility or liability for any damages whatsoever resulting from the use of this site in any manner.

* Sign up to Fin24's top news in your inbox: SUBSCRIBE TO FIN24 NEWSLETTER

Follow Fin24 on Twitter, Facebook, Google+ and Pinterest. 24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

equities  |  jse  |  markets
NEXT ON FIN24X

 
 
 
 

Company Snapshot

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

Why do you think Tom Moyane want to cross-examine Pravin Gordhan at State Capture Inquiry?

Previous results · Suggest a vote

Loading...