The Star Early Edition

Tech­ni­cal anal­y­sis: South32 – buy cor­rec­tion

- 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 Colin Abrams

DI­VER­SI­FIED min­ing com­pany South32 has a sig­nif­i­cantly higher price tar­get af­ter break­ing out of a large side­ways con­sol­i­da­tion, as shown on its chart. South32 – Higher tar­get. Rec­om­men­da­tion: Buy a cor­rec­tion. Trend: Up since June. (Daily)

In Septem­ber South32 (JSE: S32) broke off a large wedge­shaped chart pat­tern. It now has a min­i­mum up­side tar­get to R41.20. (It was at R36.60 at the time of writ­ing).

It has moved up sharply over the past week, so wait for a cor­rec­tion to buy it, eg closer to R34.

But pro­tect your trade by ex­it­ing (stop-loss) if it closes be­low R32.50, which is now im­por­tant price sup­port.

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