JSE PPC WEEKLY LOOK
PPC weekly is an interesting looking chart at the moment. Looking the price action the share price has been moving through a descending channel formation. Over the last number of weeks the price action has been forming a flattening base within the descending channel. Looking at the RSI bottoms we can see that they are increasing which is bullish for the share. The descending channel resistance is now once again being tested with the current price above the 200MA. A break of the resistance level will be highly significant for the stock going forward and will confirm bullish movement to come. It is also important to note the very large gap open at R13.70 which will be the longer term target if the resistance level can be broken. This is definitely another stock to watch and hold in a portfolio.
JSE NPK CHART TO WATCH
NPK is not really a share that I have looked at in the past but the picture is now starting to look very interesting. The share is trading well off its all time high of R49.06. Since July 2015 the weekly price action has been in the process of forming a bullish falling wedge formation. The weekly price action is now re-testing the falling wedge formation's resistance. What is also important to note with this is the very strong buy divergence on the RSI bottoms. This divergence can also be seen on the stochastics. I very much like this picture the long entry will be triggered with a break of the resistance level. The initial targets are shown on the graph but it is very likely that with a confirmed break we could even see a test of R27. This is definitely a chart to watch
$ GOLD WEEKLY
I have been bullish on gold for a number of months now and am now looking at the chart to check in to see if the picture has changed since it was last looked at. Looking at the longer term weekly chart the picture is still looking very good. Looking at the weekly price action we can see that a break above the weekly 200MA is confirmed. This is highly bullish as this signifies a long term change in trend. The price action since February 2016 has seen the gold price test the top of the falling wedge formation twice with both times holding as a support.
Using a Fibonacci extension from the last price movement there targets levels are 1 282 which has been reached 1 338 and 1 418. The bullish sentiment will remain as long as the 200ma level holds
NPN PROFIT TAKING
After the somewhat slow meandering through the horizontal channel the price action broke through the top of the horizontal channel and both targets were reached. Looking at the chart now there is a strong overhead resistance at R2 423. Looking at the daily chart we can see the stochastics grouped in the sell zone. To add to this the RSI is at a high level of 70 with a bearish cross with its moving average. All in all the daily chart is looking overbought and due for a pull back. I have sold my position to take a profit of 12.40%. I am still bullish for the share long term but will sit back and wait for the next entry.
SOL DAILY PROFIT TAKING
The recent political events have seriously pushed the rand hedge shares up. SOL is no exception to this moving significantly in a matter of a few days. Looking at the daily chart it is now time to take profit on this trade. Although I like the share for the long term the daily picture is looking very overbought. The RSI is currently at 70.71 with a bearish intersection with its moving average. Looking at the stochastic it is showing a similar picture with both stochastics in the sell zone. Profit was taken at the intersection of price action with the second target level. Profit on this trade was 15.15%
JSE INP WEEKLY CHART
INP was one of the shares that was identified to have very bearish looking weekly chart at the start of this year (first post on the 9th of Jan). Since the first post the share has tested the critical resistance declining trend line and failed to break though. This means that the very large weekly Head and Shoulders formation in still in play. The news of Zuma firing 15 ministers one of which our finance minister had a significant effect on our financial sector, taking a massive blow of R85 billion rand. Going forward it seems that the situations negative effect will not be as brief as with the Nene firing with ratings agencies already talking about the SA downgrade. Looking at the chart of INP one of SA's financial stocks it is confirming this sentiment with a strong sell zone grouping on the stochastics and a bearish cross on the RSI.
There is a gap level open at the 100% Fibonacci extension level with a close of R80.78 which is the first target down before the full Head and Shoulders target level. The target will remain as long as there is no weekly close that breaks the descending resistance level.
INP was one of the shares that was identified to have very bearish looking weekly chart at the start of this year (first post on the 9th of Jan). Since the first post the share has tested the critical resistance declining trend line and failed to break though. This means that the very large weekly Head and Shoulders formation in still in play. The news of Zuma firing 15 ministers one of which our finance minister had a significant effect on our financial sector, taking a massive blow of R85 billion rand. Going forward it seems that the situations negative effect will not be as brief as with the Nene firing with ratings agencies already talking about the SA downgrade. Looking at the chart of INP one of SA's financial stocks it is confirming this sentiment with a strong sell zone grouping on the stochastics and a bearish cross on the RSI.
There is a gap level open at the 100% Fibonacci extension level with a close of R80.78 which is the first target down before the full Head and Shoulders target level. The target will remain as long as there is no weekly close that breaks the descending resistance level.
No comments:
Post a Comment