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Writer's pictureLester Davids

This Monthly Candle Has Caught My Attention

Tuesday, 01 October 2024

Time Published: 06h53


An Update: JSE Banks vs JSE Top 40 Index

  • The closing candle on the ratio chart highlights the current sector rotation.

  • A long upper tail within a medium term overbought range + at channel resistance

  • Interpretation: Selling Pressure Following An Attempt To Rally

  • Scroll down for previous commentary



 

Previous Post: Thursday, 12 September 2024 (JSE Banks vs JSE Top 40: Approaching Key Inflection Point)

Real-Time: 11h24

  • Approaching channel resistance

  • Extended vs 75-week EMA



 

Previous Post (26 July)

  • Pre-Market

  • The Most Overbought In (Nearly) 3 Years


This is a ratio chart which shows the banks (equally weighted) relative to the JSE Top 40 Index.

The ratio has just entered an overbought range, which means that it can remain so over the short term, however, the rating (overbought) also means that the relative buy/long reward-to-risk (from a sector allocation weighting perspective) is unappealing.


Lester Davids

Analyst: Unum Capital

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