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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