VillageTrader Breakouts and setups

A weekly review and a look at some JSE setups from Village Trader featuring charts from Capitec, Absa, Discovery, Kumba, MTN, Nadbank, Shoprite, Standard bank and Vodacom.

VillageTrader Breakouts and setups

The week started with a strong sell off, following the US markets taking a dive. The S&P closed below the 200 day EMA for the first time since 2020. Our market followed suit. But then we had a sharp almost immediate recovery. S&P coming back above the 200 day EMA.

The MPC announced another 25bps rate increase when they met on Thursday. The market expected the 25bps increase. You could see that by how the banking stocks were acting from Tuesday after the Monday sell off. The banks began the rally after the announcement. Most breaking short term resistance.

Resources have been building a rally, oil continuing its run, benefiting Sasol and MTN. Its was a generally good week for resources.

ZAR showing some weakness. Looks like it’s headed towards R16 and perhaps breaking through this level.

This should boost commodity stocks and companies with hard currency revenue exposure

Read more on this week's stocks in play






Nedbank [Weekly chart]


Rand Merchant Investment Holding


Standard bank