Finweek English Edition - - Creating wealth -

Trend: Up. Strat­egy: Traders and in­vestors buy, ideally on a pull­back to­wards line 2. • Last week, An­glo fi­nally broke out of an 18-week chan­nel (lines 1 and 2) – a sig­nif­i­cant event. The only con­cern I cur­rently have is that the break­out was on low vol­ume and also that the sto­chas­tic os­cil­la­tor (on top) is over­bought. A pull­back is there­fore very likely be­fore a lot more up­side. • The share is a “buy” – but try to get in ideally on a pull­back to line 2 at R349. The safest op­tion there­fore is to buy some now and buy more if/when it pulls back. • The min­i­mum up­side tar­get is R375, mea­sured as the height of the chan­nel pro­jected up. How­ever, I’m ex­pect­ing that price to be ex­ceeded greatly, with R450 be­ing more of a re­al­is­tic tar­get. • Keep your ini­tial stop as a close be­low line 3 (R347). Once the up­trend gets un­der way – ie, es­tab­lish­ing it­self above R355 – traders can scale in and out of the mi­nor pull­backs while medium-term traders and in­vestors should hold all the way up.

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