The Star Early Edition
Technical analysis: South32 – buy correction
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.