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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.
18 REPLIES 18
sponono
Super Contributor
right on time
Penny_Pincher
Super Contributor
Jip and the neckline on 45300 seems as if it can be broke today.
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.
Penny_Pincher
Super Contributor
So perhaps there's good news to follow after the correction!
Not applicable
jeezlike - at this rate we will hit the H&S target today still!
Russ
Super Contributor
If this is just a relief rally this could be a good time to go short?
Penny_Pincher
Super Contributor
Also seems to have found resistance at 200 day EMA. If it cant break through that.....
Rams
Super Contributor
If the index traded thru 47000, then we had a clear trend. Still holding cash.
Russ
Super Contributor
This all still has the feel of a dead cat bounce to me.
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.
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.
wetta
Contributor
Head scratching issues
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?
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.
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
Rams
Super Contributor
47 711 to be precise...
DaMerlin
Contributor
are we free to rise now? hmmm....
Rams
Super Contributor
We may be going sideways....September rate hike still hovering