JSE Top 40 Index

NOTE: When Published Intraday (JSE Equities), Prices Are Delayed By 15 Minutes

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JSE Top 40 Index (J200) | The index has rebounded +5% vs our buy re-entry range and has spent the last 4 sessions (thus far the entire week) inside last Friday's trading range. Let's examine the price relative to the key moving averages:

Above it's rising 8-day EMA

Above it's rising 21-day EMA

Recently shifted back above the 200-day SMA

Recently shifted back above the 75-day EMA

The reward-to-risk / rating is NEUTRAL with neither a strong bull or bear case from current levels. A strong move higher from here is likely to see a high bullish momentum phase develop, which, over the medium term, could see overbought conditions being to set in. This would: (1) set up a tactical short/sell trade or, for longs, an opportunity to reduce into strength.

Lester Davids

Senior Investment Analyst: Unum Capital