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Technical Analysis: FTSE/JSE TOP 40 index: the support should generate a bounce

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The FTSE/JSE TOP 40 index is composed by the 40 most important South-African companies listed on the ....


Day By Day – Indipendent Research


…Johannesburg Stock Exchange (JSE). It has been evolving, for several months now, in a bullish trend supported by the 100-day moving average. Despite the current consolidation, the dynamic remains bullish above 29575 points, and should thus extend towards the historical highs. We are thereforepositive for the weeks to come.
 
03042012_1

Anticipation  :
On the short term side, prices are consolidating between the 29575 and 30647 points levels. The lower threshold of this trading range, now reinforcedby the ascending 100-daymoving average, is being tested. The underlying trend being bullish, the test of this strong support should generate a rebound, leading prices to the upper threshold.
We are therefore positive in the short term and we expect a new test of the 30647 points resistance in the days to come. We set the invalidation of this positive opinion slightly below the 29575 points support, taking advantage of a very interesting risk/reward.

Close price 29614.63

2 months Opinion BULLISH
2 weeks Opinion POSITIVE

Resistances 30647 / 31393 pts
Supports 29575 / 29090 pts


Follow-up Analysys: On March 12th, we recommended the purchase of the MSCI AC Asia Pacific ex- Japan index. Even though the trend is taking time to resume, our scenario with a target at 459 points is still valid.

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Source: ETFWorld – Day By Day – Indipendent Research

 

 

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