Bearish Sentiment on Satrix Top 40

Satrix Top 40

1. Price Formation: The price has broken out from an inverted Cup and Handle price formation on a daily chart.
2. Moving Averages: The 7-day moving average (MA) is below the 21-day MA, which is a sign indicating short-term bearish momentum.
3. 200-day Moving Average is above the Price.
4. Thus, Mas 7<21 < 200
5. Relative Strength Index (RSI): The RSI is <than 50, indicating bullish momentum and potential further upward movement.
6. Price Target: to the bottom of the channel at 57


The Satrix Top 40 is an Exchange Traded Fund (ETF) based in South Africa. ETFs are investment funds that are traded on stock exchanges, much like individual stocks. They are designed to track the performance of a specific index, sector, commodity, or asset.
In the case of the Satrix Top 40, the ETF is designed to replicate the performance of the FTSE/JSE Top 40 Index, which is composed of the 40 largest (by market capitalization) companies listed on the Johannesburg Stock Exchange (JSE). This includes a broad range of companies from various sectors.

By investing in the Satrix Top 40, an investor effectively gains exposure to the performance of these top 40 companies without having to buy shares in each individual company. The fund purchases the shares on behalf of its investors and manages the portfolio to ensure it continues to mirror the performance of the FTSE/JSE Top 40 Index.