JSE Top 40 Index - Tuesday, 03 September 2024

Pre-Market

The index has retreated from the overbought range, in line with the model reading, breaching it's 8-day EMA and now trades on it's 21-day EMA, which is in line with the previous breakout level. Any further weak price action could see the 21-EMA being breached and the 50-day EMA being tested.
At of yesterday's close, the price action reading (Tactical Trading Guide) is as follows:

Previous Note

Pre-Market
My note last week Thursday highlighted the index entering an overbought range.
On the same day, the index rally, then failed to hold it's highs and has since seen it's candle structure deteriorate, reflecting sellers starting to step up.
The 77200-77300 has acted as a strong resistance zone, with yesterday (Wednesday's candle structure also reflecting a loss of upward momentum.
As noted in the Monday's note, the 21-day EMA is a 'next level of interest' for short term buyers.
Below is yesterday's end of day reading via the Tactical Trading Guide.