TOPCOMPANY 40 IN­DEX – TEST­ING SUP­PORT

Finweek English Edition - - Creating wealth - AU­THOR

Trend: ShortUp. term down. Medium and long term still up. Strat­egy: Buy/Con­tin­uere-en­ter­buyin­gon anSA up­ward­plat­inum­re­ver­sal­stocks fromon pull­backs.line 1 or • lower.The MACD os­cil­la­tor (on top) has plenty of up­side poten• Thetial and­top 40it’s in­dex­only cross­in­gre­versed­its­downze­roof­fline­li­nenow2 re­sis­tance,(a bullish sign, break­ing­con­firm­ing­be­lowthe price­line 3chart­sup­por­t­it­self).last Tues­day. LineCon­tinue1 and­buy­ingthe 50-SA­day­plat­inum­mov­ing stock­sav­er­a­geonare­pull­backs,now im­por­tant­fo­cus­sup­port­ing main­lyindi­ca­tor­son Im­palaat the­and23Am­plats000 level.(but Northam is also Th­elook­ingcur­rentex­cep­tion­al­ly­cor­rec­tion,good).how­ever, will not af­fect the long• Thetermup­side­up­turn,tar­getwhich­foris­thestill­rand/very plat­inumpos­i­tive. price is 6 910 • The– ie, dai­lythe heightRel­a­tiveof theS­tochas­ticlarge fallingOs­cil­la­tor­wedge(on­pro­ject­ed­top) can up.still fall(The­fur­ther­price at­be­fore­the time­be­comin­gof writin­gover­sold,is 5 920.)whichPla­ce­pointsy­ourto morestop-lossshort-asterma close­down­side­be­low lineto come.4 for traders (5 800) and • The­be­low­price5 600has­for­fal­l­en­in­vestors.a lot al­ready (so sell­ing short is risky); traders rather look to re-en­ter/buy on an up­ward re­ver­sal from line 1 (23 000) level or lower (eg fur­ther sup­port if line 1 gets bro­ken is 22 700. There is po­ten­tial to 21 500, but it’s un­likely to fall that far). In­vestors keep hold­ing though. Note, if the price does close be­low line 1 (23 000) short­ing can be done, but with cau­tion and a tight stop-loss (such as a break­ing above the prior two-day high).

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