Tech­ni­cal anal­y­sis: rand de­fies po­lit­i­cal up­heaval

The Star Early Edition - - NEWS - Colin Abrams Colin Abrams is an in­de­pen­dent tech­ni­cal an­a­lyst. To sub­scribe to more rec­om­men­da­tions by the au­thor or at­tend his cour­ses, visit his web­site: www.the­mar­ket.

THE rand con­tin­ues to defy the odds and re­sist weak­en­ing against the dol­lar in the face of on­go­ing neg­a­tive po­lit­i­cal and eco­nomic fac­tors. Its chart is point­ing to more rand strength to come.

The rand con­tin­ues to make lower highs and lower lows (dol­lar weak­ness).

This has in­di­cated a strong trend for the rand over the past two months.

The cur­rency is point­ing to a min­i­mum tar­get of R12.48 to the dol­lar.

This tar­get is based on a chart pat­tern in the shape of a tri­an­gle.

There­fore, traders should be go­ing long (buying) the rand, par­tic­u­larly on one or two-day pull­backs in the price.

How­ever, a clos­ing above R13.22 to the green­back would negate the above anal­y­sis and see the rand weaken.

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