The JSE ALSI 40 Index gained 1.07% yesterday to move further away from the 50 day moving average. The medium term trend is still neutral as the benchmark index price is moving sideways but the long term trend remains bullish as the index price is still trading far above the 200 day moving average. Both the stochastic and RSI indicators confirm the bullish price… action. A bullish candlestick was formed yesterday because the index price closed higher than it opened. Three bullish candles have occurred in the last three days and although these candles were not big enough to create what is termed “three white soldiers,” the steady upward pattern is bullish. During the past 10 days, there have been eight bullish candles and two bearish candles for a net of six bullish candles. During the past 50 days, there have been 30 bullish candles and 20 bearish candles for a net of 10 bullish candles.
Source: PSG Wealth (www.psg.co.za)