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JSE Top 40 Index: Multi-Time Frame Analysis

  • Writer: Lester Davids
    Lester Davids
  • Oct 27
  • 2 min read

Research Notes October 2025 > https://www.unum.capital/post/roct2025

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The JSE Top 40 Index is currently in an extremely extended, parabolic uptrend across all major timeframes, having recently encountered resistance at its all-time high. Current Price: 103,114.19. The core thesis is that the market is due for a significant, healthy correction to relieve extreme long-term momentum, with the potential for continuation only after a deep consolidation. On the monthly chart, Base Term momentum is deep in the OVERBOUGHT tier and signaling extreme structural risk. The Weekly chart confirms this extended state, with Mid-Term momentum in the Approaching Overbought tier but sloping sideways, indicating that the rally has stalled. The daily chart shows Ultra Short-Term momentum is already in the NEUTRAL tier and sloping downwards, confirming short-term profit-taking is actively underway. The first critical support to watch is the Short-Term Support (101,000 - 99,500); a failure here exposes the Mid-Term Support/Pivot (95,000 - 92,000), which is the crucial anchor for the weekly trend. Conversely, continuation requires a clear breakout above the Major Overhead Resistance (104,000 - 106,000).


Multi-Timeframe Momentum Analysis


All three timeframes confirm an extended trend, with monthly momentum at a historical peak.


  • Monthly Analysis: The Base Term momentum is deep in the OVERBOUGHT tier and sloping sideways, indicating extreme structural risk. This level typically precedes a major, multi-month correction.

  • Weekly Analysis: The Mid-Term momentum is in the Approaching Overbought tier but sloping sideways. This shows the primary weekly trend remains near peak conviction but has stalled, requiring consolidation before any further move.

  • Daily Analysis: The Ultra Short-Term momentum is already in the NEUTRAL tier and sloping downwards, confirming that short-term profit-taking is actively in progress and the risk of a deeper immediate pullback is high.


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Lester Davids

Senior Investment Analyst: Unum Capital



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