FI­NAN­CIAL­COM­PANY 15 IN­DEX – VUL­NER­A­BLE STATE

Finweek English Edition - - Creating wealth - AU­THOR

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).

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