ANGLOO AMERICAN – BULLISH BREAKOUT
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.