This ETF gives you exposure to the Rand against the American dollar. A profit in this ETF is when the Rand weakens against the dollar.

  • The stochastic indicator confirms the oversold position of the Rand, which makes the probability for more weakness more likely.
  • This ETF was caught within a symmetrical triangle and above line B (R18-48) the symmetrical triangle will confirm a bullish pennant, when line B changes into a support. Which implies that the weakness in the Rand can continue, as long as line B remains a support then.
  • The 26 & 9 day moving average, have broken downwards which implied maybe a stronger Rand but since it appear as if the shorter 9 day moving average (green line) wants to break upwards again through the longer 26 day moving average (red line), and when it does the medium term sentiment will imply a weaker Rand again.
  • Below line A (R18-26), we can expect a stronger Rand.
  • For traders – Buy or consider a long above R18-55 but use R18-10 as stop loss to protect capital. The possible targets towards the top are: R18-66, R18-70, R18-95, R19-05 and R19-23.
  • For medium to long term investors – The 40 week moving average (R15-68) is still a support which implies the long term sentiment towards this ETF is still a weaker Rand.

Frans & Christelle