JSE is no longer the only exchange in South Africa. Their latest financial results for the 6 months ending in June 2018 reported a 7% increase in operating profits.

  • The share is nicely overbought and the stochastic indicator has broken downwards which implies that we can see more downside first.
  • The break of the 3 day moving average (green line) through the 8 day moving average (red line) downwards will confirm the short term pessimism.
  • A spinning candle (uncertainty) confirms the indecision of the investors and first sign of weakness will be visible below line A (R163-55). Above R170 we can assume that the momentum to the top will continue again.
  • For traders – Sell or consider a short below line A (R163-55) but use R167-10 as stop loss to protect capital. The possible targets towards the bottom are: R162-16, R161-02, R160-21, R159-40, R158-40 and R156-80
  • For medium to long term investors – If R167-10 remains a resistance on a weekly close, consider reducing exposure to the share. Use then every bounce in the share price to reduce exposure to the share.

Don't hesitate to ask if anything is unclear.