SXR URA­NIUM

Finweek English Edition - - Creating wealth -

Trend: Side­ways. Strat­egy: Buy on ei­ther a clos­ing price above R105, or on a pull­back to­wards line 3. Sxr is trad­ing in a large chan­nel and hasn’t given a def­i­nite break­out as yet (at the time of writ­ing). Line 3 on the 50-day mov­ing av­er­age pro­vides sup­port at R90. • The daily Sto­chas­tic Os­cil­la­tor (on top) is neu­tral, but with an up­ward bias. For now wait to see which hap­pens first, a close above R105, or a pull­back to­wards R90 (line 3). Buy when which­ever of th­ese two events oc­curs first. If the pull­back oc­curs first, then look to start buy­ing near the R95 level. • Once the price closes above R105, it’ll set up a min­i­mum tar­get of R124,80 mea­sured as the height of the chan­nel pro­jected up. How­ever, due to the length of this chan­nel, ex­pect the price to move a lot be­yond that tar­get (R133 is a more re­al­is­tic tar­get). Place your ini­tial stop-loss as a close be­low R90. In the very un­likely event of the price fall­ing back to line 1 (R81,60), buy off there.

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