South Africa’s stock market has been on a steady upward trend for nearly two years, offsetting volatility in countries such as the United States, thanks in part to its high exposure to gold prices. After a brief swing at the beginning of the month, the uptrend has recently reset and the iShares MSCI South Africa ETF (EZA) is back in the spotlight. EZA has reestablished short-term momentum within a long-term uptrend. The daily MACD bullish crossover follows a successful support test on the 50-day moving average (MA) and cloud model, highlighted by the shaded area on the chart, and serves as a positive technical catalyst. The South African agency’s momentum indicator shows higher values across time frames. On the weekly chart, EZA is supported by three rising and diverging moving averages. On the monthly chart, the rising MACD histogram reinforces the long-term uptrend. Taken together, these signals suggest that medium- to long-term momentum for South African equities remains healthy. Compared to the US, the South African stock market has consistently outperformed since the beginning of 2025. EZA’s ratio to the S&P 500 Index (SPX) has trended upward in line with price, supported by short-term momentum updates and long-term moving averages. This suggests that South African stocks could extend their relative strength through 2026. While it can be difficult for investors to add exposure after a strong rally, recent MACD crossovers strengthen the case for short-term rally follow-through. At the same time, overbought/oversold indicators are not yet suggesting meaningful upside depletion. EZA is trading near all-time highs and there is no overhead resistance. A level close to the support from the daily cloud, currently in the $68-$71 range, would strengthen the uptrend and serve as a reference point for stop loss placement and risk management. —Katie Stockton with Will Tamplin Get free access to Fairlead Strategies research here. Disclosure: None. All opinions expressed by CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, its parent or affiliates, and may have been previously disseminated on television, radio, the Internet, or another medium. This content is provided for informational purposes only and does not constitute financial, investment, tax, or legal advice or a recommendation to purchase any securities or other financial assets. The Content is general in nature and does not reflect any individual’s unique personal circumstances. The above may not be appropriate for your particular situation. Before making any financial decisions, you should strongly consider seeking the advice of your own financial or investment advisor. Click here for full disclaimer. Fairlead Strategies Disclaimer: This communication has been prepared by Fairlead Strategies LLC (“Fairlead Strategies”) for informational purposes only. This material is for illustrative and discussion purposes only and is not intended to be, and should not be construed as, financial, legal, tax, or investment advice. You should consult an appropriate advisor regarding such matters. This material reflects the author’s current expectations and presents information up to the date indicated and may be revised by the author, but he is under no obligation to do so. This material may include commentary on a wide range of indices, market conditions, different types of securities, and cryptocurrencies using the field of technical analysis that evaluates supply and demand based on market prices. The views expressed here are solely those of the author. This material should not be construed as a recommendation, advice, offer or solicitation to buy or sell any investment. This information is not intended to provide a basis for making an investment decision in any particular security or its issuer. This document is intended for CNBC Pro subscribers only and is not for general distribution. Certain information is provided by and/or based on third party sources and while such information is believed to be reliable, no representation is made as to the accuracy, completeness or timeliness of such information. This information is subject to change without notice. Fairlead Strategies undertakes no obligation to maintain or update this material based on subsequent information or events, to provide additional or supplementary information, or to provide updates or corrections to the information contained herein. Fairlead Strategies, its officers, employees, affiliates and partners shall not be liable in any way to any person for any loss, expense or claim arising from reliance on this material. Nothing contained in this document is, and should not be relied upon, as a promise or representation as to future performance. Past performance is not indicative of future results. The opinions expressed in this material may be different from or contrary to those expressed or actions taken by Fairlead Strategies or its affiliates, or their respective officers, directors or employees. Further, the opinions and assumptions expressed herein are made as of the date of this notice and are subject to change and/or withdrawal without notice. Fairlead Strategies or its affiliates may have positions in the financial instruments mentioned, may have acquired such positions at prices that are no longer available, and may have interests different from or contrary to your interests or inconsistent with the advice given herein. Investments made are made on the same terms as unaffiliated investors and do not constitute a controlling interest. Fairlead Strategies, its officers, employees, affiliates, or partners assume no liability for any loss that may arise from the use of the information contained herein. The financial instruments mentioned herein are speculative in nature and may involve risks to principal and interest. Prices and levels shown are historical or purely indicative. This material does not take into account the specific investment objectives or financial situation, or the objectives or needs of any particular investor, and is not a recommendation of any particular security, investment product, or other financial product or strategy for any particular client. The securities, investment products, and other financial products or strategies discussed herein may not be suitable for all investors. Recipients of this information must make their own independent decisions regarding the securities, investments, or other financial products mentioned herein. The Materials should not be provided to any person in any jurisdiction where such provision or use would be contrary to local laws, rules or regulations. This material may not be reproduced or redistributed without the written consent of Fairlead Strategies.
