The JSE All Share Index (ALSI) had a volatile day on January 17, 2024, ultimately closing down 0.38% at 76,029.73. The index fluctuated throughout the session, influenced by a combination of global and domestic factors.

Key technical indicators:

  • Moving Average Convergence Divergence (MACD): The MACD line crossed below the signal line on January 13, indicating a potential bearish signal. However, the histogram is still positive, suggesting some upside momentum remains.
  • Relative Strength Index (RSI): The RSI dipped below 50 during the day, but closed back above it, suggesting that the index is neither overbought nor oversold.
  • Bollinger Bands: The ALSI is currently trading within the Bollinger Bands, indicating moderate volatility. However, the bands are starting to narrow, which could signal a potential breakout in either direction.

Factors influencing the market

  • Global sentiment: Risk aversion dominated global markets on Wednesday, with concerns about rising interest rates and geopolitical tensions weighing on stocks. This put downward pressure on the ALSI.
  • Domestic news: The release of positive manufacturing PMI data for South Africa provided some support to the index, but concerns about the recent surge in COVID-19 cases kept a lid on gains.
  • Technical factors: The ALSI is approaching a key resistance level around 76,500. A break above this level could signal further upside potential, while a failure to do so could lead to further declines.

Overall, the technical picture for the JSE All Share Index is mixed. While there are some bearish signals, there is also potential for the index to move higher. Investors should keep an eye on global market sentiment, domestic news flow, and technical levels in the coming days to gauge the direction of the market.

Leave a Reply

Your email address will not be published. Required fields are marked *