JSE ALSI Rally on track to 76,185 with Interest Rate out the way

Cup and Handle and Triple Bottom has formed on ALSI over the past two months.

Sentiment has been turning bullish with international factors.

On the one hand, America has paused interest rate hikes which is leading to a global rally.

Four main reasons why a drop in Interest rates causes a market rally namely:

1. Cheaper borrowing for companies

2. Higher company profits and less cost for repaying debts

3. Better Investment Returns for investors exiting from their low interest bearing assets

4. More spending by consumers

On the other hand South Africa's Interest Rate:

The South African Reserve Bank kept the repo rate at 8.25% ... this means the prime lending rate of commercial banks also remains unchanged at 11.75%.

So we are enjoying the rally and we are slowly weeding out of the shorts as the market is trying to choose an optimistic direction.

It's been a very tough environment and those who followed strict money management rules, suffered less. But whent the market does rally or at least choose a solid direction, we will be in it for the medium to long run.

Remember “MARKETS TAKE MONEY FROM THE IMPATIENT RISKY TRADERS AND GIVES IT TO THE
PATIENT RISK AVERSE TRADERS”

Other signs are also showing upside to come:

7>21 - Bullish
Price<200MA - test

My first very positive target and might be over stretched is 76,185.

What do you think?