Per­fectly timed

Finweek English Edition - - INVESTMENT - MOXIMA GAMA

PAT­TERN FOR­MA­TION: A sym­met­ri­cal tri­an­gle is a con­sol­i­da­tion pat­tern whereby trad­ing ac­tiv­ity is con­strained be­tween the two con­verg­ing trend­lines. A break­out in ei­ther di­rec­tion could oc­cur once the pat­tern has ma­tured or at the apex (where the two con­verg­ing lines meet).

POS­SI­BLE OUT­COME: Cap­i­tal Prop­erty Fund (CPL) is cur­rently trad­ing within a sym­met­ri­cal tri­an­gle, and this con­sol­i­da­tion may per­sist un­til a break­out in ei­ther di­rec­tion oc­curs. The up­per slope of this pat­tern may ar­rest near-term up­side. But if the weekly RSI re­mains bullish, a pos­i­tive break­out above 1150cps should fol­low. We would ex­pect the up­side tar­get of this pat­tern, sit­u­ated at 1395cps, to be ful­filled in the short term (1-3 months) upon a pos­i­tive break­out. Breach­ing the 1200cps prior high would place CPL closer to that tar­geted level.

REC­OM­MEN­DA­TION: Go long at a close above 1150cps, with an 8% stop loss from the en­try price. How­ever, in­vestors must en­sure that the daily RSI is not over­bought at this level. If it is, we sug­gest in­vestors wait un­til the same level is breached again.

A FAILED PAT­TERN: A move through the 1000cps sup­port level would mean CPL has breached the lower slope of the pat­tern in­stead, thereby con­firm­ing a neg­a­tive break­out. The down­side tar­get in this in­stance would be at 705cps.

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