Trend: Short term side­ways; medium term tech­ni­cally down. Long term up.

Finweek English Edition - - COMPANIES&MARKETS -

Strat­egy: Traders buy on a pull­back. Af­ter get­ting close to line 1 sup­port (of a broad­en­ing for­ma­tion with line 2) Remgro has ral­lied from its 200-day mov­ing av­er­age (which pro­vides loose sup­port). It’s now bro­ken out above line 3 re­sis­tance. Any pull­back to­wards line 1 will be a buy­ing op­por­tu­nity. The daily sto­chas­tic os­cil­la­tor (on top) is mov­ing up from its over­sold re­gion and has more up­side to go be­fore be­com­ing over­bought. Traders buy it ide­ally on a pull­back to R107 or lower (the closer to R105 the bet­ter). Take trad­ing prof­its in the R113 to R114 zone. It’s a “hold” for in­vestors. His­tor­i­cally, Remgro has been a very de­fen­sive stock dur­ing large mar­ket cor­rec­tions. The ini­tial stop-loss for traders is a close be­low R104,50.

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