Johannesburg Stock Exchange (JSE) Top 40 Index has undergone re-accumulation and broken out above the trading range (Jumped the creek). Now it has backed up to the creek and gone into a lower TF re-accumulation. Waiting for signs that it will break the back up range on the daily TF. For now it seems that it is still ranging.
Comment:
Using a Wyckoff Wave and its volume for the JSE (See post of script) we can change the labeling for the recent re-accumulation slightly on the daily TF. The Wyckoff Wave has marked up well into the end of 2017. During 2018 some re-accumulation has taken place at around 50,000 on the Top 40 Index with volume on the Wyckoff Wave increasing every time the market dips to this level. Last weeks dip is again showing increase volume and will watch for the bounce from this level.
Comment:
We have seen some increased volume in the market the last few days and the first signs of a rejection at the support level. Looking at the sectors we see the Financial index taking some leadership again and in spite of a pullback in Resources it is still strong against the Wyckoff Wave.
Comment:
After the announcement of President Ramaphosa's Stimulus Plan we see some positive sentiment on the JSE. The highest volume since the beginning of 2018 is seen on the 10 Wyckoff Wave stocks. This indicates a turn in the market has taken place and looking for leadership stocks to go long will be a good strategy.
