JSE:JBL slipped from its all time highs of R20.00 in April 2007 and went on a rollercoaster ride that eventually dragged sideways below R1.00 from late 2013. The instrument found support in March 2020 and rallied to R4.26, forming a big "cup" when analysing price action from May 2011 on the weekly time frame. The handle of this cup started in April 2021 in the form of a falling channel and the latest support was found around R1.10 in November 2023 before price took a 65% gain rally to R1.84.
We now expect price to retrace to the R1.38 ~ R1.46 zone which lies between the 50% and 61.8% golden zone, where support may be found to take the instrument back to R1.84.
A breakout of this channel/ handle could see the instrument rally to: R2.79, R3.79, R4.26 and R8.20 with short term pullbacks to test the Bull strength.
Current sentiments on the instrument : Bullish at the R1.38 ~ R1.46 zone or upon a strong bullish close and retest above R1.95 from current levels.
The instrument is currently strongly overbought on the daily time frame and a retracement is more probable than a straight rally beyond R1.95, therefore investors will need to be cautious and patient.