MVELAPHANDA – POSITIVE CHART
Trend: Up. Strategy: Buy for more medium- term rallying. • Mvelaphanda Resources has broken out of a large rising wedge to the upside ( lines 1 and 2). After consolidating for two weeks thereafter the price is moving up again. It’s one of the few resources ( index) stocks that’s lagged on the JSE, but it now shows good upside potential. • The momentum oscillator ( on top) is currently
neutral but is turning up again, which is bullish. • Medium- and longer- term players buy it for more rallying over the coming months. Traders can scale in and out on the minor pullbacks all the way up. • The minimum upside target is R63, measured as the height of the wedge projected up. Place your short- term stop- loss as a closing price below R42,50.