Now look­ing top­pish

Set­ting up for large corrections

Finweek English Edition - - Companies & Markets - COLIN ABRAMS colin@the­mar­ket.co.za Tech­ni­cal An­a­lyst

FO­CUS­ING ON in­dus­trial stocks, we look at charts of the JSE In­dus­trial 25 in­dex (Indi 25), as well as the Dow Jones In­dus­trial Av­er­age in the US. The South African ver­sion has out­per­formed its US coun­ter­part on a rel­a­tive ba­sis, but both are now look­ing top­pish, and set­ting up for large corrections. Traders should there­fore be look­ing to sell short on ral­lies, while in­vestors are ad­vised to re­duce ex­po­sure to the stock mar­ket for now.

Please note: For more rec­om­men­da­tions and charts by the author on shares, stock in­dices and com­modi­ties please go to www.the­mar­ket.co.za.

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