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  • Writer's picturePeet Serfontein

Analyst Thoughts - Top 40 Medium-Term

THE RS PRICE CONSOLIDATION IS MATURING


  • General Overview

    • The established RS declining channel pattern continues to hold, indicating maturity. We anticipate a resurgence of the long-term bull trend towards T2 and beyond once the RS formation is fully completed.

  • Short-Term Outlook

    • The recent downward reversal from R1*/R aligns with our projected scenario.

    • We expect:

      • Any additional declines to challenge the K/S1* level.

      • Subsequent D-type range trading to finalise the RS* channel pattern.

  • Feasible Alternative

    • A more extensive correction towards S2 and S remains a viable scenario. This could also conclude the RS channel pattern if there is a break below the K* level.




Target and Re-assessment levels:

Important Level/s: 70500 and 65800

Primary Trend: RS range trading followed by a bullish trend to 75000.

Prevailing Trend: 68100

Monthly Range: 70000/65800

Technical Rating: Medium



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