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Strong rebound of the lower boundary of the channel.

• In line with the OVERSOLD reading and

• In line with the Next-Best Probability Action

• The move higher also aligns with the price action model reading which alerted traders to 'look for support the prior swing lows to capture minor rebounds'. This minor rebound turned into a MAJOR REBOUND!

• Now trading higher more than 21% from the lows on Monday 07 April.

  
  

  

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Previous Post (Saturday, 05 April): JSE Top 40 Index: Weekly Chart Analysis

JSE Top 40 Index Analysis:

Short Term (1 to 10 days): The short-term reading is Oversold. This suggests that the index has likely experienced a significant decline and may be due for a rebound or consolidation. However, being oversold alone doesn't guarantee an immediate reversal.

Medium Term (2 to 4 weeks): The medium-term reading is Weak. This implies that the index has been trending downwards over the past few weeks, indicating underlying selling pressure.

Long Term (5 to 8 weeks): The long-term reading is Neutral. This suggests that over a broader timeframe, the index hasn't established a clear upward or downward trend.

Overall Assessment:

Taking into account the weighted importance (short-term being the most significant), the JSE Top 40 Index exhibits deteriorating price action. While the oversold reading in the short term might offer a temporary bounce, the weakness in the medium term, coupled with the lack of a strong long-term trend, suggests caution. The recent price action is more aligned with the medium-term weakness than the potential for a short-term recovery.

JSE TOP 40 WEEKLY CHART

Lester Davids

Analyst: Unum Capital