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  • Writer's pictureLuke Holland

JSE Top 40, looking overbought!

As we rapidly approach our election (next week Wednesday for those not following local politics), the JSE Top 40 Index has hit top gear, influenced by both local economic indicators and global market trends.

The ZAR is trading at its best level for 2024, and a rally in commodity prices has led to a decent performance on our Top 40 so far for the month of May.

However, there's a whisper in the market that we might be nearing an overbought zone, hinting at a possible pullback!

As our analyst, Lester Davids, noted today:

“there are 13 shares in overbought status and 11 that are approaching overbought.” This increased number of overbought shares raises the probability of profit-taking, volatility, and a potential short-term correction.

As always, Unum Trade is here to help you navigate the market’s ups and downs, so we are watching the situation closely and will shout if we think we need to cut and run for cover!


We value your insights on the JSE Top 40. Join the conversation by participating in the poll on our social media platforms. We look forward to hearing from you!

 

1.  Yes, it will drop below the 73 000 level

2. No, it will rally until the elections. It will get closer or extend past the 74 400 level.

3. I prefer to look at offshore indices.

 

  1. Yes, I use it to monitor what is happening across the market.

  2. No, I prefer cherry-picking the stocks I like.

  3. Too volatile leading into elections.

 

As always, Unum Trade is here as your Profit Partner to help you navigate as we ride out the week together.

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