JSE Top 40 Index Note – 28 May 2024

The weekly Top 40 index technical update.
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JSE TOP 40 INDEX: MEDIUM TERM (D)

VIEW RETAINED: CONSOLIDATION WITHIN THE BULL TREND

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Level: 72560
This report is for informational purposes only. Click to see the full disclaimer below.

Medium term: The illustrated view of a major bull trend to T1 and T2 after the break above P/S2, remains valid.

  • The expected correction off R1* is materializing, potentially as phase 4 of the 12345 bull trend.
  • Overbought conditions (highlighted) are being addressed with the current correction. Further R1*/S1* ranging is, however likely before a return to the larger bull trend.
  • The pivot level for the bullish outlook is at S1*. A break of R1* will activate the upside poten-tial.

Target and re-assessment levels

Important levels R1* and S1*
Primary trend Bull trend to T1 and T2 over time.
Prevailing trend R1*/S1* consolidation.
Monthly  range R1*/S0
Technical rating Medium

JSE TOP 40 INDEX: SHORT TERM (2H)

VIEW RETAINED: BEARISH CORRECTION NEGATED

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Level: 72560
This report is for informational purposes only. Click to see the full disclaimer below.

General: The correction off the T1/R0 target area is materializing.

  • The preferred outcome is for further WXY over-lapping downside towards S2* , before the bull trend can re-emerge.

Short term: Interim gains should be limited to N, followed by final downside to L and S2*. While the WXY correction is preferred, a number of consoli-dation patterns can still develop.

  • – S2* is important as a Fibonacci retracement level, as well as closing the price gap at Z. S2* is thus pivotal for the bullish view.

Target and re-assessment levels

Important levels S2*
Primary trend NL defined correction  towards S2*, followed by gains to T2
Prevailing trend Gains to N then downside to L.
Weekly range N/L
Technical rating Medium

 

This report is for informational purposes only, does not constitute an offer, or solicitation to trade and should not be construed as a recommendation, or advice, to enter into, or to refrain from entering into, any transaction.

Whilst the information herein contained is believed to be reliable, no responsibility is assumed by Hite Investments and Consulting, (Pty) Ltd., their employees, associates, external contributors, or any of the references used, for any errors, or omissions, or for losses of any nature which may arise from any opinion expressed herein.

You are cautioned that information is not necessarily complete and that opinions of individuals employed at the above may differ, or be based on contrary analysis techniques andthat opinions may change over time.

The losses in trading and investing can be substantial and you should not engage in such trading and investing unlessyou fully understand all the potential risks.

The views expressed in this report may change over time and updated reports will not necessarily be issued should this occur.

Red Line: “Roadmap” – A visual representation of proba-ble future price action. A perforated red line suggest various proba-ble outcomes with the perforated line being

Blue Line: Trend Lines that constitute important sup-port / resistance or break levels

TA – Target area
MA – Moving average
R – Resistance
RA – Resistance area
MR – Minor Resistance
MS – Minor Support
MTR – Medium Term Resistance
MTS – Medium Term Support
SA – Support Area
S – Support
T – Target
* or ** – Significance of level

The intention of this analysis is to give the reader a visual picture of the most probable price path that could develop over time. This is enhanced by adding crucial levels where the proposed view becomes dubious and needs to be re-assessed (or confirmed). The benefit of this approach is that of an easy to understand and almost instantaneous grasp of the analysts view. This kind of analysis is not intended to be exact in predicting levels, and especially timing of moves, but to give a more general probability view that is easily understandable and unambiguous. The proposed “roadmap” gets adjusted over time as new price information becomes available. All technical views have re-assessment or negation levels where the proposed preference is no longer valid or needs to be re-assessed.