The JSE FINI 15 Index added 0.14% on Monday as it formed a “spinning top” or a candle with a small real body, while this same candle also had a long lower shadow. This is typically a bullish signal, particularly when it occurs near a support level. During the past 10 days, there have been five candles and five bearish candles. During the past 50 days, there have been 28 bullish candles and 22 bearish candles for a net of six bullish candles.
The JSE FIN 15 Index is trading within a narrow down channel, while testing the lower support trend line of a long term up channel. The share price is also testing the support at the 38.2% Fibonacci retracement level, while still trading above both its 50 and 200 day moving averages. Both the Stochastic and RSI Indicators are still moving lower towards oversold levels. We expect the index price to rally off the current support levels and breakout out of the narrow down channel in the short term.