FINANCIALCOMPANY 15 INDEX – VULNERABLE STATE
Trend: Long/Up. medium term up. Short term still vulnerable. Strategy: TradersContinuesellbuyingshortSAfiniplatinumstocks ifstocksthe priceon pullbacks.closes • belowThe MACDline 1.oscillator (on top) has plenty of upside poten• Thetial andJSEit’sfinancialonly crossing15 indexitsiszerotradinglineinnowa long(a bullishchannelsign, (confirminglines 1 andthe2). priceAt thecharttime itself).of writing, the price was about toContinuetest linebuying1 supportSA platinum(and thestocks50-dayonmovingpullbacks,average,focuswhiching mainlyalso onprovidesImpalasupport)and Amplatsat 8 985.(but Northam is also • ThelookingStochasticexceptionallyOscillatorgood).(on top) is still overhung and • canThe fallupsidequitetargeta bit forfurtherthe rand/beforeplatinumagain becomingprice is 6 over-910 sold.– ie, theIt’s heightalso givingof thea largenegativefallingdivergence,wedge projectedwhich warnedup. of(Thethepricecurrentat thecorrection.time of writing is 5 920.) Place your • Whilestop-losslonger-as atermcloseinvestorsbelow lineshould4 for continuetraders (5holding800) andfini stocksbelow 5regardless,600 for investors.traders should sell short these shares if the index closes below line 1 (ie closes below 8 985). Do so with caution though because the long-term trend is still up. The downside target if that breakdown occurs will be 8 280. For those not shorting, focus on finding a good spot to reenter fini stocks – either on an upward reversal off line 1, or an upward reversal from the 8 280 target (if a breakdown below line 1 occurs).