RMB – bullish con­sol­i­da­tion

Finweek English Edition - - Creating wealth -

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.

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