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Trend: Short and medium term up. Long term side­ways to up.

Strat­egy: Buy for a short-term rally. BAT has formed a de­clin­ing chan­nel over the past few weeks (lines 3 and 4). It’s likely to break out to the up­side from that. The big pic­ture is a large broad­en­ing for­ma­tion (lines 1 and 2). The daily sto­chas­tic os­cil­la­tor (on top) is over­sold, which is a bullish set-up. Buy on ei­ther a close above line 4 or on a pull­back to be­low R254. (The lat­ter is more ag­gres­sive.) Note: Line 4 was at R257,15 on Mon­day 10 Au­gust. The min­i­mum up­side tar­get is R268,50, mea­sured as the height of the chan­nel pro­jected up. Take prof­its there. Note: That will be a retest of its Fe­bru­ary all-time high of R267,83 (which will pro­vide re­sis­tance up there). Note: Line 2 is at R278. Keep the ini­tial stop-loss quite wide as a close be­low R246. But once it closes above line 4 raise your stop to a close be­low R253,50.

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