Price Action Talking Points
Pre-Market JSE
Sa mid & large caps: in the short term, it's getting crowded in here. Considering the technical summary below, it is a rarity seeing zero constituents in both the oversold phase and even more so in the high bearish momentum phase. Conversely, the high bullish momentum phase is populated with a remarkable 18 names and while the index is higher, there is only one share in the overbought category, which may also speak to a potential divergence on the index which is trading higher while fewer shares are in a real overbought range. There's been a significant amount of long side opportunities in recent weeks which I have discussed, however traders would have to be much more selective when looking to participate in the upside. In fact, the lack of oversold conditions may be indicative of the potential for several shares to pullback and re-test their rising short term moving average. There are pockets of opportunity, but I wont be forcing buy/long side ideas. As an active trader, it's just better to maintain discipline and respect the price action/data.
Pre-Market JSE
Sa mid & large caps: in the short term, it's getting crowded in here. Considering the technical summary below, it is a rarity seeing zero constituents in both the oversold phase and even more so in the high bearish momentum phase. Conversely, the high bullish momentum phase is populated with a remarkable 18 names and while the index is higher, there is only one share in the overbought category, which may also speak to a potential divergence on the index which is trading higher while fewer shares are in a real overbought range. There's been a significant amount of long side opportunities in recent weeks which I have discussed, however traders would have to be much more selective when looking to participate in the upside. In fact, the lack of oversold conditions may be indicative of the potential for several shares to pullback and re-test their rising short term moving average. There are pockets of opportunity, but I wont be forcing buy/long side ideas. As an active trader, it's just better to maintain discipline and respect the price action/data.