This week's Foretelling Friday focuses on South African miners, a sector currently showing strong momentum due to high commodity prices, improved operational efficiencies, and favourable exchange rates. However, technical indicators such as high RSI levels, stocks trading above short-term moving averages, and increased trading volumes suggest the sector is approaching overbought conditions, potentially leading to a period of profit-taking.
Notably, the J210 index, which includes the top 10 resource shares in South Africa, is down 0.5% on Monday morning.
As can be seen above, is the J210 approaching a resistance level and expected to experience profit-taking?
What are your thoughts about the South African miners for the week ahead? You can participate in our poll on our social media platforms. We'd love to hear from you.
1. Will keep their upward momentum and finish the week in green.
2. Will sell-off and will finish the week lower.
3. Will hold stable and will fluctuate with commodity prices only.
Stay informed and be ready to react as Unum Trade guides you through these pivotal market developments.
Comments