ALL-SHARE INDEX – to retestt support
Trend: Short term sideways. Medium and long term up. Strategy: Buy JSE index stocks on a retest of recent lows. • The recent market correction has taken the JSE all-share index down to test line 1 support of a large rising channel (with line 2). The price is also near its 50-day moving average, which typically provides loose support. • The daily stochastic oscillator (on top) is trying to head up again from its oversold level so any downturn in prices will be an opportunity to buy. • Look for a retest of the recent lows at the 25 100 to 24 800 level in the short term. Then buy if/when an upward reversal day occurs from there (though with caution initially) for a more sustained rally back-up. Place your stop-loss as two consecutive daily closes below 24 750 based on that chart. Only if that stop loss is triggered will it set up a lower target of 23 000 for a larger sell off. Nevertheless, the longterm trend remains up.