Finweek English Edition - - Creating wealth -

Trend: Up. Strat­egy: Buy on ei­ther a close above R30 or on a pull­back to R28. • Dis­cov­ery has bro­ken out of a large broad­en­ing for­ma­tion ( lines 1 and 2) af­ter mov­ing side­ways for the past two years. This break­out is a sig­nif­i­cant event and should lead to far higher prices for this stock. • The weekly Sto­chas­tic Os­cil­la­tor ( on top) is still over­bought and can pull back fur­ther in the short term, nev­er­the­less the big­ger pic­ture looks far more pos­i­tive now. • Buy Dis­cov­ery on ei­ther two con­sec­u­tive clos­ing prices above R30, or on a pull­back to R28, which­ever hap­pens first. • The min­i­mum up­side tar­get is R42 over the months ahead. Place your ini­tial stop loss as a clos­ing price be­low R27. While many in­dus­trial stocks on the JSE have had an ex­cel­lent run over the past year, Dis­cov­ery is one that still has great up­side po­ten­tial.

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