It is starting to feel a little like the roll-over we were on the lookout for in U.S. markets last week is beginning to happen. Gold is pushing a lot higher on the back of growing coronavirus concerns as Italy enters the early stages of lock-down due to the virus spreading within its borders rapidly. We’ve seen videos of scores of people queuing outside banks in China and rumours of Chinese banks not having liquidity for withdrawals. The situation is getting worse.
We’ve had continued issues around Load Shedding and various other economic ailments, and thus our Rand has weakened somewhat. This weaker Rand narrative is what we think is likely to drive our market in the coming week.
So this week is a little weird. There are some bullish looking setups emerging on some of the banks, although they are in the middle of nowhere in terms of large trading ranges.