Tech­ni­cal anal­y­sis

The Star Early Edition - - COMPANIES - Colin Abrams 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

FOOD stock Sov­food (JSE code: SOV) is look­ing pos­i­tive, hav­ing bro­ken out of a large con­sol­i­da­tion pat­tern, with a higher tar­get in place, as the charts shows. Sov­food – Higher tar­get Rec­om­men­da­tion: BUY Cur­rent trend: Up over the past 18 months Weekly: Two weeks ago, Sov­food broke above the re­sis­tance level (red line) to con­firm a large bullish pat­tern, called an in­verse head and shoul­ders. It now has a higher (min­i­mum) tar­get of R14.50 in place. (It is trad­ing at about R11). It is buyable at its cur­rent levels.

Pro­tect your trade by ex­it­ing (sell­ing) if it closes be­low R8.90.

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