RMB – bullish consolidation
Trend: Short/medium term sideways. Long term up. Strategy: Buy either near line 1 or on a close above line 2. • RMB is in a medium-term broadening formation (lines 1 and 2), which is a consolidation before more upside to come. • The strategy here is for short- and medium-term players to buy it, either as close to line 1 (R30,80) as possible on a pullback or to buy on a closing price above line 2 (R35,50). Do whichever happens first. • Long-term investors keep holding, regardless of any
shorter-term corrections. • The minimum upside target over the medium term (once the breakout above line 2 takes place) will be a move to R42 at line 3 resistance. • The bottom segment shows RMB compared to Investec plc on a relative basis. The relative trend over the past nine months has been sideways – ie, neither outperforming the other. Both stocks therefore are equally favoured.