JSE Top 40 Index

Research Notes May 2026 > https://www.unum.capital/post/rmay2026

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Monday's strong rebound off the 200-day simple moving average saw no immediate upside follow-through on Tuesday as the index close lower by 0.20%, though near the highs of the previous day. The index remains capped by it's flat 21-day and 75-day exponential moving averages (EMA), but above it's 8-day EMA. Over the medium term, a series of lower highs tell the story of a tape largely controlled by sellers with buyers making minor attempts to regain control. The index also remains vulnerable to a drop back below it's 200-day simple moving average which would be the 1st real sign that traders are starting to take a defensive stance following strong gains throughout 2025. What's it going to take to change the story from neutral to bullish? Strong price action, a reclaim of the short term moving averages as well as a print/close above 110,000.

Lester Davids

Senior Investment Analyst: Unum Capital