Flash Note: Top 40 Cash | J200
A two-day advance has seen the index trade outside of the recent range and at 2 1/2 month high, with the rebound off the March lows being 44% or around 14800. At current levels, the index faces three strong resistance levels:
(1) the 200-day moving average. It may slightly overshoot this level and/or hover around it in a consolidation phase.
(2) the prior support, which may become resistance
(3) the prior breakdown level seen on 27 & 28 Feb 2020.
Whilst the RSI remains strong (pre-market), the 63 does represent a fairly overbought trading zone.
Trading Desk Analyst
Unum Capital (Pty) Ltd
An Authorised Financial Services Provider (FSP 564)