Today T40 index made new high for this year and it is currently trading 9.13% up for the year. Together with Top40 (J200), another index that I closely monitor (J154 – general mining index) broke up. Anglo American and BHP Billiton, as two biggest mining companies in South Africa, are part of J154 and I believe that this index is of great importance for the behavior and performance of J200.
Two charts above are - 60 minutes chart for J154 on the top, while 60 minutes J200 chart is at the bottom. As you can see on J200 chart - thick red line was acting as resistance from the beginning of the year till approximately May 11th. J154 was lagging and finally broke same resistance only on last Friday (May 29th). We can conclude that only now, after J154 had confirmed break out, we can expect more of the movement to upside.
Do not forget that reverse head and shoulders target is around 23000 for J200 index - There is still about 1800 points to be made or almost 9%.
J200 index can be traded with ALSI futures or Satrix 40 exchange-traded fund.