Tech­ni­cal anal­y­sis: All Share In­dex

The Star Early Edition - - COMPANIES - Colin Abrams

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.the­mar­

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