Strat­egy:

Finweek English Edition - - COMPANIES&MARKETS -

Buy. The cop­per price has formed a broad­en­ing for­ma­tion (lines 1 and 2). At the time of writ­ing (US$98,20) it had just bro­ken out above line 2 and there­fore has a sig­nif­i­cantly higher tar­get (short term). That will also be bullish for stocks. The short-term sto­chas­tic isn’t yet over­bought but, im­por­tantly, the weekly sto­chas­tic is over­sold, which is a bullish sign. Traders buy at the $98 to $100 level or bet­ter (eg, ide­ally, if it pulls back to­wards $94). The min­i­mum up­side tar­get is $106,50 – ie, the height of the broad­en­ing for­ma­tion pro­jected up. Take at least half prof­its there, but keep some for fur­ther up­side po­ten­tial to line 3 at $109. Place your ini­tial stop-loss as a clos­ing price be­low $93,99 (spot price). Once the price gets to its min­i­mum up­side tar­get of $106,50, take half prof­its and use a trail­ing stop – such as a break­ing of its prior two-day low (to al­low for cap­tur­ing fur­ther up­side).

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