INVESTEC plc – moree rallying ahead
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.