• The share is extremely oversold on the stochastic indicator which makes the probability of a bounce more likely.
  • First sign of strength will be visible above line A (R28-80).
  • The morning star formation (positive) will be confirmed above line A which is a beautiful turnaround pattern.
  • Below R27-55 the next lower high will be confirmed which will be seen as negative.
  • For traders – Buy or consider a long above line A (R28-80) but use R27-55 as stop loss to protect capital. The possible targets towards the topare: R29-30, R29-60, R29-90, R30-15, R30-55 and R31.
  • For medium to long term investors – The level of R27-55 shouldn’t change into a resistance on a weekly close otherwise this share might be in trouble. Use every rally in the share price to reduce exposure to the share.  

Frans & Christelle de Klerk