JSE FTSE TOP 40


Investing & Money
piece written on the 12th October 2014 by  

I’ve been watching the stock market from afar of late and haven’t been involved in many trades because I’ve been anxious about what’s going on. It wasn’t too long ago that the Top 40 and the All Share index were trading at incredible highs. And like everything in life, what goes up, must come down and that’s exactly what my fear has been.

When I started looking into this, I wanted to see a good spread of charts so I could see how long it’s taken for the market to kick back, what dips have occurred along the way and most importantly, is the current dip the same as previous dips and hence a recovery will take place, or is the dip far greater and therefore we could be in for some trouble.

5 Year Chart

5year

3 Year Chart

3year

1 Year Chart

1year

6 Month Chart

6month

3 Month Chart

3month

1 Month Chart

1month

10 Day Chart

10day

I’m no professional, but for me the charts really aren’t looking great at all. It’s very concerning to see that the current drop looks a lot deeper than previous dips and if my technical analysis is in any way correct, it looks to me like it’s broken through support which is worrying. Normally when support is broken, a share continues to fall, I’d say we might be looking at a drop all the way down to 40,000!

The All Share Index is going in the same direction so I’m not going to waste time with charts for that, you can just click here and look for yourself.

Before we sign off, let’s at least have a giggle:

lol

For those of you who aren’t familiar with the TOP 40 Index, here is a list of the stocks along with their 1 year change:

JSE TOP 40