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Johannesburg - The JSE's All Share [JSE:J203] index has
enabled long-term investors to heave a huge sigh of relief.
The past week’s short-term rally from an oversold market
again pushed the index above the 200-day moving average (31 380 points), which
means that the bull market may not be over. But the local market is once more
technically oversold, which could easily result in profit-taking.
In order for the bull market to continue, the index needs to
consolidate above 31 380 points.
Aspen Pharmacare Holdings [JSE:APN]
A head-and-shoulders formation, which is not always
technically regarded as good news, is busy developing on the Aspen share price
daily graph.
The right shoulder is taking shape. The neckline is holding steady at R82.50 and if the share price breaks downwards through the neckline, the share price could fall to R77.00.
Speculators can consider buying around the neckline and use
R81 as a stop-loss to protect capital. Medium- and long-term investors would do
better to wait for the head-and-shoulders to resolve before buying.
Merafe Resources [JSE:MRF]
The fact that Merafe’s share price has broken upwards through
a line on the daily graph offers a speculative opportunity.
Use R1.08 as a stop-loss to protect capital. If the share
price rises, the next resistance levels will be at R1.22, R1.28 and even R1.39.
Investors should however remember that the local equity
market is currently overbought, which could easily usher in profit-taking on
the JSE.
