JSE TOP 40 BULLISH PICTURE
After the pull back in the last couple of trading days the TOP 40 is looking bullish once again. After the formation of Fridays trading candle stick we can see that the price action is now above the all important 200 MA level signifying longer term bullish sentiment. When looking at the indicators they too are confirming this bullish sentiment with a strong buy confirmation on the RSI bottoms and a bullish intersection between the fast and slow stochastics. The target level is the strong resistance level at R 47 105.
SOL TRADE UPDATE
For this trade update I am also looking at the current SOL Daily chart for more insight into the trade that was based off the longer term weekly picture. Since the inception of the trade the price action has reached the 1st target level after which SOL announced results that were not very positive. Since then the price action has moved down towards the open gap level between R 389.92 and R 382.96 which has now been closed. The daily candle sticks represent a bullish looking reversal pattern to add to this the daily indicators are grouped in the buy zone with a bullish moving average cross on the RSI. The chart is looking good for some positive movement now to reach the 1st and second target level shown in the daily and weekly charts.
SOL Daily chart
looking at the current weekly chart after establishing the daily one, we can see that the price action on the candle sticks has held on the 61.8% extension level. Taking this into account this is possibly a good time to add to your position if you would like to increase your exposure to this stock.
SOL Weekly chart
GOLD WEEKLY CHART
If you have been following this years trade updates then you will know that the JSE gold sector is one that I am very bullish on. This post update will now look at the gold commodity price. On the bigger picture the price action has pulled back to the long term support line and held. In the coming weeks there will be some significant levels that if tested and closed above will add to the bullish sentiment on gold. The first level that I am looking at is movement above the 23.6% retracment level as seen in the chart. This will signify price action movement between this and the 38.2% retracment level. The second level is the all important 200MA level a weekly close above this level will be very bullish and trigger a change in the longer term sentiment.
Looking at the indicators they are confirming this bullish sentiment with the stochastic indicators grouped in the buy zone with a bullish crossover. The same can be seen in the RSI. The two target levels depicted in the chart are 1 330.60 and 1 462.85. The target levels will be confirmed with a close above the 200MA.
Looking at the indicators they are confirming this bullish sentiment with the stochastic indicators grouped in the buy zone with a bullish crossover. The same can be seen in the RSI. The two target levels depicted in the chart are 1 330.60 and 1 462.85. The target levels will be confirmed with a close above the 200MA.
SILVER WEEKLY CHART
Silver like gold is another commodity that I am very bullish on. Looking at the weekly chart there is a very clear bull flag being formed. The price action is now testing the resistance of the bull flag. If the price action can break through the resistance level with a weekly close then the target levels seen in the graph will be triggered. The first target level is the weekly 200MA level at 18.75. Thereafter the targets are 19.89 and 21.53. Looking at the indicators they are confirming this bullish sentiment with weekly buy zone groupings on the stochastic and RSI with bullish crossovers.
USD/ZAR WEEKLY CHART
Currently trading roughly 24% off its high the USD/ZAR chart is starting to look bullish once again (ZAR weakness). The chart has managed to pull back to the long term trend line level with a triple bottom. The Bearish ZAR sentiment is also strengthened by the latest announcement of the possibility that Pravin Gordon might be replaced in the coming weeks. The target levels shown in the graph will be triggered with a break of the resistance. If the long term trend line is broken this will negate the target levels shown in the graph. The stop loss for this trade is a close below 13.18. Looking at the RSI there is a clear buy divergence on the RSI bottoms. If the resistance is broken this will be a seriously bullish catalyst for the local gold shares.
JSE STXFIN WEEKLY CHART UPDATE
The bearish picture for the chart still remains as the weekly candle sticks are still moving through the bearish symmetrical triangle setup. Another catalyst to this movement today was the announcement from Zuma which saw the ZAR weaken against all other major currencies putting strain on the financial stocks. I am staying far away form all financial stocks for the time being. A break of the triangle bottom would trigger the 2 targets shown, which will most likely run for the entire year. This is certainly a chart to watch which has the potential to be a good shorting opportunity.
SOL WEEKLY CHART
The SOL trade is currently 20% up since inception. Although I believe that long term this will be a winner to many times in my trading journey thus far I have not taken profit when the chart depicted that I do so, and lost out. I will be closing the trade for now at a test of the 3rd target or a test of the 200MA level. I will only consider re-entering a long position with a confirmed weekly close above the 200MA level. Looking at the indicators the share is showing to be slightly overbought although not yet grouped in the sell zone.
The SOL trade is currently 20% up since inception. Although I believe that long term this will be a winner to many times in my trading journey thus far I have not taken profit when the chart depicted that I do so, and lost out. I will be closing the trade for now at a test of the 3rd target or a test of the 200MA level. I will only consider re-entering a long position with a confirmed weekly close above the 200MA level. Looking at the indicators the share is showing to be slightly overbought although not yet grouped in the sell zone.
SOL - First Chart and comment:
SOL Daily Chart
SOL is looking very bullish with a pull back to the weekly support level that has been in place since August 2014. Both the Daily and weekly charts have the indicators in the buy zone signaling that the share is highly oversold. Targets are shown in the graph and will remain unless there is a weekly close below the support level of R347. The current PE is 8.64 with a forward P/E of 9.13.
SOL Daily Chart
SOL is looking very bullish with a pull back to the weekly support level that has been in place since August 2014. Both the Daily and weekly charts have the indicators in the buy zone signaling that the share is highly oversold. Targets are shown in the graph and will remain unless there is a weekly close below the support level of R347. The current PE is 8.64 with a forward P/E of 9.13.
JSE STXFIN WEEKLY CHART
STXFIN is also not painting a bullish picture. Looking at the weekly chart the price movement has been forming a bearish symmetrical triangle formation. Any long positions should be taken with caution. If the price action breaks the triangle support level the outlook will be very bearish with the target levels shown on the graph. The first target level is the 61.8% extension level of R13.15 and the second level is the 100% extension level and parallel line method target level of 11.98.
