OLD MU­TUAL – RALLY AT­TEMPT

Finweek English Edition - - COMPANIES & MARKETS -

Trend: Short term up. Medium term tech­ni­cally down. Long term side­ways.

Strat­egy: Traders buy for more up­side. Af­ter de­clin­ing over re­cent months Old Mu­tual moved side­ways in De­cem­ber and then broke out above both lines 2 and 3 re­sis­tances last week. That’s a bullish event. The weekly sto­chas­tic os­cil­la­tor is mov­ing up from its over­sold re­gion and is there­fore still bullish. Ex­pect more up­side to come. Traders buy some now and buy more if the price hap­pens to pull back to­wards line 3 (1340c) over the short term. Ex­pect a move to its 200-week mov­ing av­er­age, which typ­i­cally pro­vides re­sis­tance – cur­rently at 1500c. Take some profit there. The price has the po­ten­tial to reach 1600c if it can push through its 200-week mov­ing av­er­age. It’s worth keep­ing part of your hold­ing for that pos­si­bil­ity. Keep your ini­tial stop-loss as a weekly clos­ing price (or two con­sec­u­tive daily closes) be­low 1330c.

Newspapers in English

Newspapers from South Africa

© PressReader. All rights reserved.