Tech­ni­cal anal­y­sis: Telkom re­cov­ery aims higher

The Star Early Edition - - COMPANIES - Colin Abrams

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

Newspapers in English

Newspapers from South Africa

© PressReader. All rights reserved.