RICHEMONT – Uptrend resumes
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.