J200

29 Nis

An effective way of assessing opportunity is via the JSE technical summary, which is published daily. In south africa, or on the jse, there is a lack of breadth data which has forced one to use alternative tools to measure breadth. Fortunately, the tools and methodologies have served clients well. Most recently, the market pulled back, which saw 21 shares in a high bearish momentum / approaching oversold phase. Simultaneously, the tactical trading guide highlighted several shares which offered an attractive reward-to-risk on the buy/long side. At the last close, there are zero shares which are in a high bearish momentum / approaching oversold phase. This reflects the massive improvement in breadth as well as the buy/long reward-to-risk which has been reduced as a result of the advance of a significant number of constituents. Today, the likelihood of higher levels remain, however traders need to be alert to the potential for the index to fail to hold it’s prior session highs. This would signal that the shortg term upside momentum is waning. Also note, the technical trend rating for the index is: high bullish momentum / approaching overbought.