JSE:S32 took off from the lows of R16.37 in March 2020 and went on a +230% impulsive rally to R62.50 that ended in March 2022 before price started moving sideways to correct.
Considering the latest price action, the instrument has been correcting in the form of a bullish flag and is currently trading at R40.80 above the 50 Day EMA after a double bottom structure reaction between the 50% and 61.80% Fib retracement levels of the March 2020-2022 impulse. Price has also gapped up between R38.00 and R39.00, calling for a mini retracement on the lower time frames before possibly continuing higher.
On the Daily time frame, the RSI just touched overbought levels and plonked down towards neutral levels, supporting sentiments for a pullback. On the Weekly chart, the RSI just came from sniffing oversold levels and is currently above the smoothing average but still trading under the 50 Week EMA.
To the upside, we can see the instrument reaching for targets at R62.50, R80.00, R96.00 and R136.60.
Earnings data coming out on 15 Feb 2024 should be a catalyst for any further price movement to have price trading above the 50 WEEK EMA.
Long term Bullish sentiments will be turned neutral if the 50 Week EMA (currently sitting at R44.00) acts as resistance and the instrument ends up slipping below R37.00. A bearish outlook will pull a seat to join the table below R33.90.
Considering the latest price action, the instrument has been correcting in the form of a bullish flag and is currently trading at R40.80 above the 50 Day EMA after a double bottom structure reaction between the 50% and 61.80% Fib retracement levels of the March 2020-2022 impulse. Price has also gapped up between R38.00 and R39.00, calling for a mini retracement on the lower time frames before possibly continuing higher.
On the Daily time frame, the RSI just touched overbought levels and plonked down towards neutral levels, supporting sentiments for a pullback. On the Weekly chart, the RSI just came from sniffing oversold levels and is currently above the smoothing average but still trading under the 50 Week EMA.
To the upside, we can see the instrument reaching for targets at R62.50, R80.00, R96.00 and R136.60.
Earnings data coming out on 15 Feb 2024 should be a catalyst for any further price movement to have price trading above the 50 WEEK EMA.
Long term Bullish sentiments will be turned neutral if the 50 Week EMA (currently sitting at R44.00) acts as resistance and the instrument ends up slipping below R37.00. A bearish outlook will pull a seat to join the table below R33.90.