From a note, just published.
Signals In November 2022 Suggested A 'Relative Underweight' In The Sector
Back in November I presented my view on the JSE Resources sector relative to the JSE Top 40 Index, with the bottom line being that traders/investors might want to consider a potential “RELATIVE UNDERWEIGHT” position in the sector.
We saw a minor ‘pop’ one week later, with a subsequent ‘rollover’ and breach of the incline to trigger a large bear flag technical formation within the megaphone structure.
Below is my original view (Time-Stamped on 22 November), followed by an updated chart (as at today).
Miners vs Top 40 (today, Friday 24 March 2023)
Since November, the equally weighted index is down by around 12%, with varying performance across the constituents.
See the demand-supply zones (green & red) on the weekly chart.
If we close around these levels today, 8 out of the last 10 weeks would have end in negative territory.
Let’s see keep an eye on the price action IF indeed it does trade around the next ‘demand zone’.
Signals In November 2022 Suggested A 'Relative Underweight' In The Sector
Back in November I presented my view on the JSE Resources sector relative to the JSE Top 40 Index, with the bottom line being that traders/investors might want to consider a potential “RELATIVE UNDERWEIGHT” position in the sector.
We saw a minor ‘pop’ one week later, with a subsequent ‘rollover’ and breach of the incline to trigger a large bear flag technical formation within the megaphone structure.
Below is my original view (Time-Stamped on 22 November), followed by an updated chart (as at today).
Miners vs Top 40 (today, Friday 24 March 2023)
Since November, the equally weighted index is down by around 12%, with varying performance across the constituents.
See the demand-supply zones (green & red) on the weekly chart.
If we close around these levels today, 8 out of the last 10 weeks would have end in negative territory.
Let’s see keep an eye on the price action IF indeed it does trade around the next ‘demand zone’.
