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risky stuff

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Not applicable
That is a 4000 point head and shoulders on our index in the making. Risky risky stuff going long now. And a realistic scenario too - since it will take us to January lows - which is where the global markets are sitting at right now anyways. Two big downward gaps have taken us here, and the only thing propping us up is a week's worth of price resistance in early june. In my experience, when we retest resistance this violently, it hardly ever holds.
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18 REPLIES 18
sponono
Super Contributor
right on time
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Penny_Pincher
Super Contributor
Jip and the neckline on 45300 seems as if it can be broke today.
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Rams
Super Contributor
It's broke, but I see a reverse head and shoulders forming that takes the index 4000 points up......the time is near for lining up those one year and longer term longs.
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Penny_Pincher
Super Contributor
So perhaps there's good news to follow after the correction!
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Not applicable
jeezlike - at this rate we will hit the H&S target today still!
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Russ
Super Contributor
If this is just a relief rally this could be a good time to go short?
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Penny_Pincher
Super Contributor
Also seems to have found resistance at 200 day EMA. If it cant break through that.....
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Rams
Super Contributor
If the index traded thru 47000, then we had a clear trend. Still holding cash.
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Russ
Super Contributor
This all still has the feel of a dead cat bounce to me.
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Not applicable
this volatility is just insane! A couple of warning bells for me - 1) Europe is buying rumour here, and not fact, so upside potential of a positive greek announcement is limited, but downside swing of a no-deal announcement most definitely isn't. 2) The US ain't sharing the love - with their stocks unable to get out of the starting blocks 3) China - oh China! 30% of the market cap of the index is suspended from trading? How can you possibly trust a heavily leveraged Chinese market rally where probably $8 trillion worth of stocks cannot participate? I don't think we have begun to see the lows. So my plan here? In volatile markets - don't chase the rallies. The only successful strategy is to be contrarian.
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Penny_Pincher
Super Contributor
Had a look at the Shanghai Index (SSEC) - Looks like the right shoulder of a huge H&S may be developing there as well.If such comes to bear it's not going to be a sneeze like Greece.
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wetta
Contributor
Head scratching issues
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Not applicable
China is putting in a law now to prohibit
people from selling within 6 months.
This is how the central banks are now "controlling" crashes.
Would you want to buy in a market that could drop 30% again and you were forced to hold for 6 more months?
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Penny_Pincher
Super Contributor
In my book that is called "manipulation". Isn't it just another way of QE, but the government no spending a cent.
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Rams
Super Contributor
All of these issues will be settled possibly by end July into August, will be moving out of cash end July , into September .Fed rate hike also to play out. As for the charts , reverse head and shoulders forming which is a double ZIGZAG Elliot wave correction , Trading thru 47000 to above 48000 is where correction will be over
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Rams
Super Contributor
47 711 to be precise...
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DaMerlin
Contributor
are we free to rise now? hmmm....
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Rams
Super Contributor
We may be going sideways....September rate hike still hovering
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