TOPCOMPANY 40 INDEX – TESTING SUPPORT
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).