The wheat price is bullish as it is trading above the moving average. The price finds support at a rising angle as depicted by line 2. The sellers are in control at line 1. This setup implies that wheat is in a sideways consolidation in a longer term rising trend.
The current setup is still positive for farmers with wheat to sell. I expect to see the price test 2800 in the next 2 weeks. If the price manages to break below 2630, farmers should consider selling their stock.
This index of the 40 largest companies on the JSE broke out of the year-long sideways consolidation (within the red circle) to resume the rising trend. We expect to see the index rise to the 2008 high above 31 000 points eventually.
Now that we are out of the long and frustrating sideways market, we follow our tried and tested system of buying the strongest shares in the strongest indices. This method not only offers better returns on capital but also better returns on the risk taken, as the stronger momentum shares tend to make smaller corrections when the overall market goes through a correction. In essence, this is the way we add value to your portfolio.
