JSE BANK IN­DEX – Bullish break­out

Finweek English Edition - - Creating wealth -

Trend: Up. Strat­egy: Buy SA banks for more ral­ly­ing. In­vestors hold. • The JSE bank in­dex has bro­ken out of a medium-term broad­en­ing for­ma­tion (lines 1 and 2). That’s a pos­i­tive de­vel­op­ment for SA bank­ing shares in the weeks to come. • The daily RSI is near­ing the over­bought level but not yet fully over­bought. It’s still con­firm­ing the bullish price ac­tion for now. • Buy SA bank­ing shares, fo­cus­ing on the five largest ones, for more ral­ly­ing over the short and medium terms. Note: The long-term trend of th­ese stocks is still clearly up. • The min­i­mum tar­get for the bank­ing in­dex is 474. (At the time of writ­ing the level was 425; there­fore there’s still, at least, an­other 12% up­side to come over the medium term.) Place your stop-loss for large bank­ing shares as a clos­ing price be­low line 3 on this in­dex. (Line 3 was at 403 on Mon­day, 23 April and ris­ing by one full point/day there­after – eg, to 404, etc.)

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