The JSE:STXIND is on the verge of printing a new all-time high. The ETF itself can be bought, one can also consider looking at the ETF holdings to check if the holdings are also at or moving towards buy zones.
Tree in the forest approach.
The JSE Industrial Index ( J211 ) has been in a trading range since 2016 and has broken the upward trend in the process. The covid drop interestingly was not backed by volume as seen by the lack of movement in the volume RSI and low volume spike. Price has recovered back into the trading range but has shown little enthusiasm to break out. The bounce has been on...
The JSE Industrial Index went through a distribution trading range and together with the overall market started to markdown. However, relative to the Top 40 the Industrial Index is showing strength. However, it is probably not time to get too excited as this is likely to only be a pullback and test of the trading range that was broken. In the short term, this...
The JSE Industrial Index has broken below the lows of the distribution trading range. Some support could be found at 5500 but after a backup to the trading range, the markdown should begin in earnest. The Industrial Index is stronger than the Top 40 index and the decline in this sector is slower than the rest of the stocks.
Following the distribution of the industrial index (See posts below) on the JSE after last week we are now starting the markdown. Volatility has increased and volume has declined which indicates no buying interest. A test of the bottom of the trading range should now take place and we can then look for the signs of a break below the trading range to start phase E.
Updating the previous post at the start of 2020 (see below) has not changed my evaluation that the JSE Industrial Stocks are being distributed. The relative strength to the Top 40 index is declining an we have seen some signs of weakness (SOW) and inability to rally. Will be watching the start of 2020 for the start of the markdown.
Using the STXIND as a proxy for the industrial index to get an indication of volume it looks like the industrial stocks on the JSE are being distributed. We have seen an upthrust and sign of weakness (SOW) with increased volume on the declines and no interest in the increases. Price has held below the 200 SMA and Yearly Pivot Point. We are now looking for a break...
The above chart is a perfect display of the concept of 'change in polarity'. This principle asserts that once breached, a support level becomes a resistance level.
You'll notice how this level of +- R72.30 was a major support level in 2018 that held on multiple occasions. Eventually we got the break through in Sept 2018 and the bulls caved in completely, seeing...
