Update on JSE All Share Index

Update on the JSE All Share

We have been trading a fantastic long on the market this week especially in Gold and gold shares. But the general market also referred to as the All Share Index, has had a significant week of upside.

How did we become aware of the move in the market over the last week? We use our technical analysis of local and some international stock markets. We get an overview of the local stock market using different fundamental and technical indicators. For instance, our position on GOLD from last week was to buy from around the $840 mark and to sell at $880 this week.

Buy understanding some chart patterns, in particular the ascending triangle pattern, we could plot an expected target of $140 possible upside to the Gold price once the gold price broke above $830 last week. This also triggered our positions in gold shares like GoldFields and AngloGold from Monday this week. We have since closed our positions yesterday as we saw on our short analysis that Gold could pull back slightly, likely due to profit taking. So we moved our money off the table as well.

ALSI End of Day Report: we are at the 21 day EMA and we have resistance at 19360 on our LIVE 15 min chart. There is also a double top pattern formation on the ALSI live at the moment which suggests some downside after the nice bull rally we have experienced.

The MACD is about to cross down as well on a LIVE chart with the Stochastic 13 also looking very overbought. All of these types of indicators suggest some sell off in the ALSI 40 index today and tomorrow.

Fundamentally speaking however, the CPI and PPI are being anounced in South Africa this week. CPI was very positive yesterday which will add comfort to the market going higher. Once the interest rate cut which is said to follow next week, this will inflate the local JSE market to the upside.

Keep an eye on Sasol as it may have a pull back to around 26500c over the next few days. Obviously keeping an eye on Brent Crude oil would be a good idea at this point. Well, we keep an eye on it at any point when it concerns our position on Sasol. The two are very much linked to each other.

For more info on learning to assess the market the way we do... go visit www.tradingmoneytree.com and www.newsweek.co.za We have also put together a free basic tutorial about money and investing.

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