TIGER BRANDS – UPSIDE
Strategy: Buy. Tiger Brands has been in a falling channel (lines 2 and 3) over recent months and is now breaking to above line 3 of the channel. It’s testing its falling 50-day MA (resistance) but is likely to continue up, because it now has a higher target. The daily stochastic oscillator (on top) isn’t yet overbought (which is bullish). Note how it gave a positive divergence (as labelled) to forewarn of the current rally. Buy it at current levels: it was trading at R180,68 at the time of writing. Its minimum upside target is to R189,20, measured as the height of the channel projected up. Take half profits there but leave some on for further upside potential to R195. The initial stop-loss is a close below R172. Once it gets to R189,20 raise your stop to a breaking of its prior three-day low. Note: Line 1 is long-term support at R168. If it does happen to fall to that before rallying significantly then buy off/near line 1. The stop will be a close below R168.
Trend: Short and long term sideways. Medium term technically