Technical analysis: Telkom recovery aims higher
TELKOM is still recovering from its 2013 low with an upside break-out. We show an upside target for it based on its chart. Telkom – Higher target Recommendation: BUY Trend: Short term up. Medium term sideways. Long term up.
After consolidating sideways for the past two-and-a-half months in a symmetrical triangle, Telkom has broken out above line 2 resistance. There is a higher target in place for it.
Its moving average convergence/divergence (on top) still has higher to go before becoming overbought, which is bullish. Shorter-term oscilla- tors though (not shown) are overbought. But if it does pull back it will be temporary.
Buy at current levels. If it does pullback slightly (to below R61), add to that position.
The minimum upside target is R76.30, measured as the height of the triangle projected up.
Initial stop-loss is a close below R53.80. Once it trades up to R70, move the stop up to a close below R60. Tighten it again as it nears the target. (No harm in taking partial profits above R70 to reduce your risk). Colin Abrams is an independent technical analyst. To subscribe to more recommendations by the author, or attend his courses, please go to www.themarket.co.za