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).