Mining Stocks Dig Deep as JSE Top 40 Moves Higher

The JSE Top 40 Index (JSE: J200) is currently on a promising trajectory, poised for its third consecutive week in positive territory. With a notable gain of 1.48% week-to-date, this surge is primarily attributed to the robust performance of mining stocks, notably African Rainbow Minerals Ltd (JSE: ARI), leading the charge.  

Driving this bullish momentum is the backdrop of growing risk sentiment, coupled with a weakening U.S. Dollar. The recent softening of the Greenback follows concerning signals from the U.S. labour market, marked by an uptick in jobless claims—a key indicator of economic health. This development suggests a potential cooling of the labour market, igniting expectations of subdued inflationary pressures.  

Consequently, market observers anticipate potential rate cuts in the U.S. this year, further bolstering the appeal of risk assets. As traders navigate these dynamics, the intersection of economic data and market sentiment will likely continue to shape the trajectory of the JSE Top 40 Index, offering both opportunities and challenges in the ever-evolving landscape of global finance. 


The JSE Top 40 Index continues its bullish stride, riding atop an upward trend bolstered by several key indicators. Trading above the 100-day moving average, the index’s upward trajectory finds validation in both technical patterns and market sentiment. A distinctive ascending channel pattern, coupled with six consecutive days of gains, underscores the prevailing bullish momentum. 

Notably, support materialized firmly at the 66462.83 level, coinciding with the channel’s lower boundary and oversold RSI conditions, highlighting a robust foundation amidst price fluctuations. Presently, the index finds itself near the upper boundary of the channel, propelled by sustained upward pressure. 

Should this bullish momentum persist, attention will likely turn to a potential retest of the prior swing high at the 72623.52 level, a significant point of interest supported by the 23.60% Fibonacci Extension level. However, a resurgence in selling pressures could prompt a downturn, with the 100-day moving average poised to act as a crucial downside marker. 


With mining stocks leading the charge, the JSE Top 40 Index continues its bullish trend, supported by technical indicators and market sentiment. Attention remains on key levels, with a potential upside towards the 72623.52 level, while the 100-day moving average acts as a vital downside marker amidst evolving market dynamics. 

Sources: Reuters, TradingView 

Piece Written By Nkosilathi Dube, Trive Financial Market Analyst  

Disclaimer: Trive South Africa (Pty) Ltd (hereinafter referred to as “Trive SA”), with registration number 2005/011130/07, is an authorised Financial Services Provider in terms of the Financial Advisory and Intermediary Services Act, 37 of 2002. Trive SA is authorised and regulated by the South African Financial Sector Conduct Authority (FSCA) and holds FSP number 27231. Trive Financial Services Ltd (hereinafter referred to as “Trive MU”) holds an Investment Dealer (Full-Service Dealer, excluding Underwriting) Licence with licence number GB21026295 pursuant to section 29 of the Securities Act 2005, Rule 4 of the Securities Rules 2007, and the Financial Services Rules 2008. Trive MU is authorized and regulated by the Mauritius Financial Services Commission (FSC) and holds Global Business Licence number GB21026295 under Section 72(6) of the Financial Services Act. Trive SA and Trive MU are collectively known and referred to as “Trive Africa”.

Market and economic conditions are subject to sudden change which may have a material impact on the outcome of financial instruments and may not be suitable for all investors. Trive Africa and its employees assume no liability for any loss or damage (direct, indirect, consequential, or inconsequential) that may be suffered. Please consider the risks involved before you trade or invest. All trades on the Trive Africa platform are subject to the legal terms and conditions to which you agree to be bound. Brand Logos are owned by the respective companies and not by Trive Africa. The use of a company’s brand logo does not represent an endorsement of Trive Africa by the company, nor an endorsement of the company by Trive Africa, nor does it necessarily imply any contractual relationship. Images are for illustrative purposes only and past performance is not necessarily an indication of future performance. No services are offered to stateless persons, persons under the age of 18 years, persons and/or residents of sanctioned countries or any other jurisdiction where the distribution of leveraged instruments is prohibited, and citizens of any state or country where it may be against the law of that country to trade with a South African and/or Mauritius based company and/or where the services are not made available by Trive Africa to hold an account with us. In any case, above all, it is your responsibility to avoid contravening any legislation in the country from where you are at the time.

CFDs and other margin products are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how these products work and whether you can afford to take the high risk of losing your money. Professional clients can lose more than they deposit. See our full Risk Disclosure and Terms of Business for further details. Some or all of the services and products are not offered to citizens or residents of certain jurisdictions where international sanctions or local regulatory requirements restrict or prohibit them.