JSE Top 40JSE Top 40 Index | The trading range on the index has been very range-bound over a 5-day period, with narrow candle structure reflective of a sellers resuming their activity following the prior 5-day advance (04-08 January 2021) where buyers were in clear control. With weakness being seen in the United States on Friday, it raises the potential for follow-through to the local market which is sensitive to global developments. Having been rejected at 'resistance level 3', a print below 58290 would trigger a reversal of the recent upward trend. We also note the price now trading outside of the steep incline support in place since 04 January. In terms of the technical indicators, the 7-day Relative Strength Index (RSI) is looking to cross below the 14-period RSI, a sign of near-term weakness.
