Technical analysis: All Share Index
THE FTSE/JSE All Share Index (Alsi) has had a very good rally in recent weeks, but it is approaching a level from where it has sold off in recent years. Alsi: nearing resistance level. Recommendation: take profits into strength. Trend: up in the short term up; sideways in the medium to long term. The chart shows that the Alsi is nearing a zone of resistance (red lines), which has been tested a number of times since 2015 and has “prevented” the index from moving higher. The zone is 54 000 to 55 188. As such, the index is high and nearing a correction. Therefore, shortand medium-term traders should be protecting their gains of recent weeks, or looking to take profits, with a view to buying in again after a correction. The index is vulnerable to a correction to 52 500 to 52 000, or lower, in the coming week.
Colin Abrams is an independent technical analyst. To subscribe to more recommendations by the author, or to attend his courses, go to www.themarket.co.za