JSE40 dominated by bulls lifting the market higher throughout the day


JSE Top 40 USD Net Index (JSE40) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team

Highlights

JSE40 dominated by bulls lifting the market higher throughout the day
JSE40 unable to break through key resistance level
JSE40 closes higher for the 3rd day in a row
JSE40 pushes through Wednesday's high

Overview

Moving higher for the 3rd day in a row, JSE40 ended Thursday at 2542.74 gaining $104.82 (4.3%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 2509.59, the index confirmed its breakout through the prior session high after trading up to $53.72 above it intraday.

Daily Candlestick Chart (JSE40 as at Mar 26, 2020):

Daily technical analysis candlestick chart for JSE Top 40 USD Net Index (JSE40) as at Mar 26, 2020

Thursday's trading range has been $152.73 (6.28%), that's slightly below the last trading month's daily average range of $171.33. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for JSE40.

One bullish candlestick pattern matches today's price action, the White Candle.

Unable to break through the key technical resistance level at 2558.83 (R1), the stock index closed below it after spiking up to 2563.31 earlier during the day. The failure to close above the resistance could increase that levels importance going forward. When prices bounced off a significant resistance level the last time on March 20th, JSE40 lost -5.83% on the following trading day.

The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.

Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for JSE 40. Out of 46 times, JSE40 closed higher 58.70% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after eight trading days, showing a win rate of 56.52% with an average market move of -0.01%.


Market Conditions for JSE40 as at Mar 26, 2020

Loading Market Conditions for JSE40 (JSE Top 40 USD Net Index)...
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