IN­VESTEC plc – moree ral­ly­ing ahead

Finweek English Edition - - Creating wealth -

Trend: Short term up. Medium term side­ways to up. Long term up. Strat­egy: Traders wait for more pull­back to­wards R91,10 be­fore buy­ing. • In­vestec plc (as well as In­vestec Ltd, which looks iden­ti­cal in shape) has bro­ken out of a broad­en­ing for­ma­tion (lines 1 and 2) and is pulling back to retest line 2. Af­ter a bit more pull­back the price is ex­pected to head up again. • The sto­chas­tic os­cil­la­tor (on top) is over­bought and can move down over the short term be­fore mov­ing up again. Traders wait for a pull­back to­wards R91,10 (line 4) and then buy on an up­ward re­ver­sal day from there. It can pull back to R90, but wher­ever the up­ward re­ver­sal oc­curs is where you should en­ter. (Note: line 3 is at the R90 level.) In­vestors should keep hold­ing de­spite any short- or medium-term pull­backs. Af­ter a pull­back to the R91,10 level look for re­newed ral­ly­ing to a min­i­mum tar­get of R103,70 (short term), which is mea­sured as the height of the pat­tern pro­jected up. Traders take prof­its there. When buy­ing on a pull­back place your ini­tial stop-loss as a clos­ing price be­low R80.

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