CHARTS POST 7

REM WEEKLY PICTURE 

REM is not a share that I have posted about much in the past but the weekly chart is definitely now worth noting. Looking at the chart we can see that the share price movement has now tested a double support level and held. Adding to this we can also see that the price movement has created a double bottom level at R205. Taking the indicators into account we can see that the RSI bottoms are refusing to confirm the lower lows. The current picture is looking like a test of the 200MA is on the cards. 

This level also coincides with the 161.8% extension level with the target at R245.69. The stop on this one is however quite large with the trade only going out of play with a confirmed weekly break of the ascending trend line support. 

BAT WEEKLY PICTURE

BAT is starting to look extremely good we have seen the bounce off the support level and now we are coming ever closer to the all important weekly 200MA level. The indicators are showing that there is still a lot of potential bullish movement on the cards as the RSI is still far off its highs. A break above the 200MA will be the confirmation of this bullish move. The target levels can be seen on the graph. BAT is also a company that I really like with good management and diversified assets. 

Trajectory Algorithm Forecast

I have decided to run the trajectory forecasting model in conjunction with the technical analysis chart when possible for the JSETOP40 or ALL SHARE analysis posts. As detailed in the earlier post on the TOP40 there is a very clear and very large inverse head and shoulders formation brewing (All so on the ALL SHARE). What is apparent is that both are pointing to a similar outlook. In the past when the chart and model align it is a good sign of potential movement to come. Will be interesting to watch this play out.

The Technical Analysis targets can be seen in the graph with the 1st target being the 61.8% extension level at R 48 330 and the second target being the 100% extension level of R49 901

Description of contents

The red line is the actual historical price action for the Top40. The grey line is the trajectory forecasting algorithm's path following the price movement. As the algorithm follows the price numbers it is applying machine learning to analyse the trend and seasonality in the numbers. At the point at which the model is run the algorithm then forecasts 30 periods (in this case days) into the future which is depicted after the actual price action stops.  

Trajectory Algo 

Top 40 Technical Analysis 

JSE NPK WEEKLY UPDATE

JSE NPK still a very good looking chart with the share trading 61% off its all time high! Since the last post the formations target is still waiting to be confirmed as we have still not yet been given a confirmed close outside of the falling wedge formation, the last weekly candle briefly moved outside of the resistance but still closed within the formation. Looking at the indicators the buy confirmation is still in play on the RSI with the increasing RSI bottoms. The stochastics are showing a bullish picture too with a bullish cross on the slow stochastics and a bullish cross between the fast and slow stochastic lines. Still definitely a chart to watch closely, this one could have a very nice run if we can get that confirmed break. The targets are as seen in the graph.

$GOLD DAILY CHART

This post is simply serving as an update on the current dollar gold chart. Looking at the weekly chart we can see that the bullish sentiment is still strongly in play. The price action is still above the all important 200MA level. The bullish targets and their levels are shown on the chart. The targets will remain as long as we dont see a weekly close below the 200MA level. Looking at the indicators the chart is slightly overbought but there is no sell zone grouping just yet. 

TOP40 MASSIVE INVERSE HEAD AND SHOULDERS 

Looking at some of the global indices it is very clear that we have not seen as much bullish movement when compared to something like the SNP500, but what is currently brewing on the Top40 could be a very large bullish move. Price action has been in the process of forming a very large Inverse Head and Shoulders formation since July 2016. The formation has now been completed and price action is above the neckline. The first target up is the 61.8% extension level with far more movement to come if the price action can remain above the neckline level. It is however important to note that the chart is showing to be overbought. Remaining above 47 315 will keep the bullish sentiment in play.

HAR BACK AT IT AGAIN 

The chart shown is the daily chart for Harmony, once again it is starting to look bullish. Looking at the price action we can see that it has pulled back to the established support level. On the RSI bottoms we can see that they are increasing shown a buy confirmation. Looking at the stochastics they are not yet grouped in the buy zone but are approaching it. For the leg up there is a very large open gap shown on the graph which will be the initial target. The next target up is the 61.8% extension level at R35.52

JSE BANKS (J835) WARNING!

Having a look at the JSE banking sector I am still not yet convinced that this sector is out of the firing line. The rising wedge that has been in formation since July 2015 broke to the downside after the recent "Cabinet reshuffle". Looking at the weekly chart we can see that the price action is now above the all important 200MA once again. In technical analysis it is not uncommon for a falling wedge to break to the downside and price action to come back to test the support as a resistance and then continue its movement to complete its target. Looking at the RSI we can see that there is a sell divergence on the RSI tops which is not bullish. All in all I will not be going long on any of the banks at the moment and will wait to see if the index will hold above the 200MA.