The property group Resilient has not only faced accusations of market manipulation but also has been a focus of criminal investigation. They were accused of inflating their income and net asset value. On the 10th of April the update on the independent review (Mr Fakie). According to his independent review there was no evidence of executive misconduct or any breaches. There was also no evidence of market manipulation or insider trading
- A possible inverse head and shoulder formation (positive) is visible with the neckline waiting at line A (R68-80).
- The formation will be confirmed when line A changes into a support. The conservative target of the formation is R78-17 and the full target of the formation is R95.
- Below R58-20 the formation will be wiped off the table.
- The 26 & 9 day moving averages have already crossed one another to the upside which is seen as positive.
- For traders – Buy above line A but use R58-20 as stop loss to protect capital. The possible targets towards the top are R72-14, R75-08, R78-17, R80-45, R81-75, R83-64, R85-45, R87-12, R89-11, R91-45, R92-63 and R95.
- For medium to long term investors – There is also an inverse head and shoulder formation on the weekly graph. Do the same as the traders above.
- Note – Keep in mind on the 7th of May, a distribution in specie will take place. For every 1 Resilient share you will get a 0.4 Fortress Ltd share.
Let us know if there are any questions.
Frans & Christelle de Klerk