The South Africa 40 index double-bottom target at 43550 has been realised, and slightly exceeded to make a new high around 43820.
Since then, the price has retraced marginally, providing the first pullback from a new all-time high. The upward trend bias remains and the recent high at 43820 once again becomes the favoured initial resistance target, which if exceeded further favours the upper trend line resistance at 44100.
The upper and lower trend lines (black lines) shows the price starting to form a rising wedge, giving us an indication that the upward trend has started to creep, i.e. the trend may be losing its momentum. Although the upward trend remains favoured, the rising wedge provides warning of possible correction in future.
With this in mind should the 44100 level be reached caution is considered, and if support at 42550 is breached a short-term downside target becomes favoured at 41600.