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Trade Idea on JSE Ltd this morning coincidentally... The strength in the Rand has helped finance and retail counters rebound somewhat. The JSE with its ability to facilitate execution is in a strong short term position to take advantage of any (outward?) flow. Technically we have seen the share price rebound strongly after a a steep decline, now having formed an inverse head and shoulders pattern; normally a signal of a reversal in a bearish downward trend. A break above the confluence of the diagonal and horizontal support at the right hand shoulder of the pattern, which technicians would term as the neckline, would signal a confirmation of the upward break. A target of 15100c is expected and this is normally assumed as the height of the head to the neckline, projected upward from the right shoulder, all though this is not an exact science. An increase in volume should accompany the breakout for confirmation and traders may see it as a little concerning, given that it has fallen off on the rally. A failure for the current setup would be considered with a close below the right hand shoulder of the pattern at 13359c. The risk to reward ratio of this trade setup constitutes a little more than 1: 2 with a downside of 3.8% and upside of 8.9%