JSE40 closes lower for the 2nd day in a row


JSE Top 40 USD Net Index (JSE40) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team

Highlights

JSE40 closes lower for the 2nd day in a row
JSE40 breaks below Thursday's low

Overview

Moving lower for the 2nd day in a row, JSE40 finished the week 6.02% higher at 2819.46 after losing $51.43 (-1.79%) today. Closing below Thursday's low at 2841.43, JSE 40 confirmed its breakout through the previous session low after trading up to $84.78 below it intraday.

Daily Candlestick Chart (JSE40 as at May 22, 2020):

Daily technical analysis candlestick chart for JSE Top 40 USD Net Index (JSE40) as at May 22, 2020

Friday's trading range has been $110.90 (3.87%), that's far above the last trading month's daily average range of $83.61. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for JSE40.

Although the stock index is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.

Among the two market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for JSE 40. Out of 80 times, JSE40 closed higher 51.25% of the time on the next trading day after the market condition occurred.


Market Conditions for JSE40 as at May 22, 2020

Loading Market Conditions for JSE40 (JSE Top 40 USD Net Index)...
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JSE40 breaks below Thursday's low

May 29, 2020
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