Finweek English Edition - - Creating wealth -

Trend: Medium term side­ways, turn­ing up. Short and long

term up. Strat­egy: Buy it on a clos­ing price above R109,50 or on a pull­back. Stan­dard Bank was test­ing line 2 re­sis­tance of a medium-term broad­en­ing for­ma­tion (lines 1 and 2) at the time of writ­ing. A break­out above line 2 (R109) will be very sig­nif­i­cant and set up a sharply higher tar­get. • The daily rel­a­tive strength in­dex (RSI, on top) can still rise fur­ther be­fore be­com­ing over­bought and there­fore still bullish. • Buy Stan­dard Bank (and other re­tail banks) on ei­ther a clos­ing price above R109 or on any pull­back in price to­wards R104 (do which­ever hap­pens first). The medi­umterm pic­ture here is look­ing very pos­i­tive. * The min­i­mum up­side tar­get (once the break­out oc­curs) will be R124 (mea­sured as the height of the broad­en­ing for­ma­tion pro­jected up). * Place your ini­tial stop-loss as a clos­ing price be­low R103. As the price nears the R124 tar­get, nar­row a trail­ing stop-loss to al­low for lock­ing in prof­its (such as a break­ing of the prior two-day low).

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