The reception area of the Johannesburg Stock Exchange. File picture: Leon Nicholas

Johannesburg - South African stocks power to new life highs, ignoring a quivering economic outlook at home and globally, but technical charts suggest they are likely to see some selling in the short term.

The Top-40 index touched 46,010 in earlier trade but eased off and is currently up 0.3 percent to 45,883.

The All-share rose to just shy of 51,000 but has retraced to 50,863.

The blue-chip index's 14-day relative stength index, or RSI, is currently at 76.9, while the All-share is at 76.4.

Anything above 70 is traditionally considered overbought territory by traders that use the gauge.

The indices are also trading above their upper Bollinger bands, another gauge of momentum used by analysts in a trending market. - Reuters