JSE Top 40It's Been a Long Time, Glad to be Back! 🚀
Hey TradingView fam! After a long hiatus, I'm excited to dive back into the charts with you all. Today, my focus is on the JSE Top 40. With upcoming elections in South Africa and approximately 130 other countries going to the polls this year, we're bound to see some market volatility. But will this lead to a bear market? In my personal opinion, it's a no. Let's break it down. 📉➡️📈
Weekly Chart Analysis:
When looking at the weekly chart, which aligns well with long-term investing, the current market structure is very bullish. We have equal highs sitting at 75,921.75, and the price is currently in a supply level heading into the South African elections. With loadshedding expected to kick back in post-elections, this could fuel Rand hedge stocks in the index. The continued devaluation of the Rand is likely, given the weak economic growth and poor management of state resources.
What Does This Mean?
My bet is on the USD-denominated bonds hurting balance sheets, and we might see an Eskom bailout announced within the next few years. It’s still unclear how much diesel Eskom is burning to keep the lights on, but this could significantly impact the market. We could see prices hit all-time highs and then retreat to the 67,500 region, which should provide a decent entry with a target set at the 84,650 region.
If there's a risk-off event in global markets, let it fall to 57,675 before switching to the daily chart for entries. 📊🔄
Elections Around the World 🌍
Did you know that around 130 countries are having elections this year? From major economies to emerging markets, this will surely add an extra layer of excitement and unpredictability to the trading environment. Buckle up, it's going to be an interesting ride! 🎢
Final Thoughts
The blend of political events, economic challenges, and market dynamics makes this an intriguing time for the JSE Top 40. Keep your eyes on the charts, stay informed, and let's navigate these waters together.
Disclaimer: This post is for educational purposes only and does not constitute financial advice. Always do your own research before making any investment decisions. 📚💡
Happy trading, everyone! Let's make this year a profitable one. 🌟