On 20 January our warning flagged the risk of downside on the JSE - which subsequently saw a 19000 point or 36% decline to the lows. Following that, on 18 March we called for the the opportunity to participate on the upside, which was/is being followed by a 13800 rebound. At current levels the index is around 41% off it's 19 March lows however some caution should be exercised.
Technically, we have seen a breakdown of the channel followed by a classic, sharp back-test which has taken us to 47222 at today's highs. These highs are also in line with the 2nd breakdown zone seen in late February and early March. Technically, the index may be overextended to the upside and is possibly due a pullback following the aforementioned strong bounce. On the downside, the 50-day EMA at 44462 may act as a short term support zone. On the upside, 47343 and 47292 should cap further advances.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.