The instrument we are looking at this week is the Alsi 40 near dated future.

The Alsi has been an index of two halves with commodities and Naspers moving higher and retail and financial shares moving sideways or lower.

The Alsi looks like it is in the beginning of a consolidation phase and the key support level is at 48500 as noted on the chart. I would also like to bring to your attention the slowing momentum. The Stochastic 21 day is showing some negative divergence.

Ultimately if we see the commodities such as Anglo, BHP and Glencore start to correct we could see the Alsi breakdown. I suggest looking at the recent upward trending support levels of the miners. If they breakdown the Alsi would break below the 48500 which would initiate further downside.

Some levels to consider

• 48500 if the level breaks, further downside should be expected.
• 50 000 – 50 500 is the resistance area of this consolidation phase.

Next time

We are looking at global indices and reviewing the trend in some of them. We are also looking at some shares that might see a trend change.

[users number=”1″ id=”118″]