EXXARO – TEMPORARY PULLBACK
Trend: Up on all main timeframes.
Strategy: Traders buy for another up leg. Exxaro is giving a temporary pullback after a good run over recent weeks. I’m expecting one more up leg before a larger correction. Look for a reversal up from its 20-day moving average, which was being tested at the time of writing. The short-term stochastic oscillator has pulled back to an oversold level, which is bullish. Traders buy in the R117 to R118 range. Note: Any investors (ie, longer term players) who hold this stock should be taking partial profits on the next rally. The target is up to line 2 at R128,20. Traders take partial profits at R126,50 on the way up and the rest at the target. Place your initial stop-loss as a close below R115,50. Once the price closes above R125, raise your stop to a close below R119,50.