JSE40 breaks below 100-day moving average for the first time since January 8th
JSE Top 40 USD Net Index (JSE40) Technical Analysis Report for May 17, 2019 | by Techniquant Editorial Team
JSE40 finished the week -2.14% lower at 3741.42 after losing $63.48 (-1.67%) today. Today's close at 3741.42 marks the lowest recorded closing price since March 28th. Closing below Thursday's low at 3768.46, the stock index confirmed its breakout through the prior session low after trading up to $44.60 below it intraday.
Daily Candlestick Chart (JSE40 as at May 17, 2019):
Friday's trading range has been $71.03 (1.88%), that's slightly above the last trading month's daily average range of $69.93. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently just the same than usual for JSE40.
One bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on May 9th, JSE40 actually gained 2.13% on the following trading day.
Prices are trading close to the key technical support level at 3683.55 (S1). The market closed below the 100-day moving average at 3757.87 for the first time since January 8th.
While still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Selling could accelerate should prices move below the close-by swing low at 3704.47 where further sell stops might get activated. Trading close to March's low at 3636.12 we could see further downside momentum if potential sell stops at the level get triggered.