MVE­LAPHANDA – POS­I­TIVE CHART

Finweek English Edition - - Creating wealth -

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.

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