TIGER BRANDS – UP­SIDE

Finweek English Edition - - COMPANIES&MARKETS -

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

down.

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