The JSE Top40 daily chart is showing exhaustion, one can make a case for a confluence of resistance around current price level while RSI is turning from an overbought position. Today (16th Nov) price has confirmed a swing high which increases the confidence that we are heading down & price will have to go below the blue uptrend support before finding a low.
The index itself is not ideal to short, however it gives a guide for picking those shares that offer higher reward & have a positive correlation to the index. For those who are long underlying shares, it affords the opportunity to open short hedging positions who profits can add to long to medium term holdings when the index turns upwards.
The index itself is not ideal to short, however it gives a guide for picking those shares that offer higher reward & have a positive correlation to the index. For those who are long underlying shares, it affords the opportunity to open short hedging positions who profits can add to long to medium term holdings when the index turns upwards.
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Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.