EXXARO – TEM­PO­RARY PULL­BACK

Finweek English Edition - - Companies & Market -

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.

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