San­lam in the process to build a new rally

The Star Early Edition - - COMPANIES & NEWS - Colin Abrams

AF­TER a re­cent slide, San­lam’s share price is con­sol­i­dat­ing and build­ing up for a new rally, as shown on its chart. San­lam – Rally po­ten­tial. Rec­om­men­da­tion: Buy on a pull­back.

Cur­rent Trend: Short-term side­ways, but im­prov­ing.

A sharp sell-off in San­lam’s share price over May/June reached a sup­port­ing trend­line and the price is sta­bil­is­ing right now, build­ing up for a rally.

Traders can buy it on mi­nor pull-back from cur­rent lev­els, eg at the R65.50 level.

Then once it closes above R67.50 ex­pect the new rally to ac­cel­er­ate to a tar­get of R70 to R70.50 for a short-term trade. But pro­tect your trade by ex­it­ing (sell­ing) if the price closes be­low R63.80.

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

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