TECHNICAL ANALYSIS: South32 almost a good buy

SOUTH32 is a diversified mining stock listed on the JSE (share code: S32). Its price is moving up after having dropped since December last year. It seems to be on the verge of breaking above an important level, for buying. South32 – Improving Recommendation: LOOK TO BUY

Trend: Sideways to down in recent months.

(Daily) South32 has moved up sharply since late February. And now it is testing an important trend line (in red). This is called a “resistance” line.

If the price can close above this line – that is, a closing price of R27.75 or higher – it will be a signal to buy this stock.

Such a signal will point to a rally to R32.40.

After buying, if the price drops to below R26.25 and closes there, rather get out (sell it), because it will most likely drop again.