RICHEMONT – Up­trend re­sumes

Finweek English Edition - - Creating wealth -

Trend: Short term up. Medium term turn­ing up. Long term up. Strat­egy: Short- and medium-term traders buy. In­vestors hold. • Richemont has fi­nally bro­ken out of a broad­en­ing for­ma­tion (lines 1 and 2) and more up­side is ex­pected over the com­ing weeks (per­haps months). • The short-term rel­a­tive strength in­dex (RSI, on top) is reach­ing the over­bought re­gion but more fol­low through in the short term is ex­pected be­fore a pull­back (and then more up­side to fol­low af­ter that). • Buy it for more ral­ly­ing over the short and medium term. In­vestors keep hold­ing for the long run, as the ma­jor trend is still firmly up. • The short-term tar­get (min­i­mum) is R45,70 – ie, the height of the pat­tern pro­jected up. But over the medium term ex­pect a move higher to R49. Sup­port for a pull­back (when one oc­curs) will be lines 2 and line 3, both at R41,60. An up­ward re­ver­sal off there (af­ter a pull­back) will present an­other op­por­tu­nity to buy.

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