JSE Top 40 Index Note – 28 May 2024
JSE TOP 40 INDEX: MEDIUM TERM (D)
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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)
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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 |
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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