Saturday 13 May 2017

CHARTS POST 8

TKG WEEKLY CHART

TKG is not a share that I normally look at but the current chart is looking very interesting. The price action has been moving through a large megaphone formation and is currently testing the support level. Fridays close of trade saw the share come to test the weekly 200MA level. A break above this level will be a highly bullish signal for the share. Looking at the indicators we can see a bullish buy zone grouping on the stochastics as well as a bullish cross of the RSI and its moving average. A close above the 200MA will confirm the two targets shown on the graph, these being 1) 68.18 and 2) 75.60 - also the 61.8% extension level. The bullish sentiment will remain as long as the megaphone formation support level holds.





REI WEEKLY CHART

The resent news on nicotine regulations saw the share prince of REI have a pull back to test the all important weekly 200MA level. Looking at the price action now we can see that the 200MA level has held. Looking at the indicators currently they are not yet grouped in the buy zone but are moving strongly towards it. The current standing is looking good for a long position. There are two targets which can be seen on the chart, these being: Target 1: R31.62 and Target 2 R34.21. The target levels will remain as long as the share price action does not break the long term support level. Important to note that this level has been in play since 2012 so it is a very significant support level.






$ GOLD 

This chart was posted quite a while ago and we will now have a look at the updated price action has done since. Looking at the chart the gold price has not had much significant movement, the price action is now testing the 200MA for the third time. Taking global news into account the situation with the US and North Korea could drive gold as investors flock to a save haven in gold. Technically we need to see a weekly close above the 200MA level as a confirmation for more bullish movement to come. A close above the 200MA will target the two levels depicted in the chart. 






USD ZAR 

This is a chart that I posted a while ago on the USD/ZAR. After the news on the no confidence vote the ZAR was obviously going to see some weakness international currencies. Looking at the chart the first target set has been reached. When looking at the current situation it is evident that the price action is above the all important 200MA level after Fridays close. Going forward what can we expect when looking at the chart? We are currently at a very significant point in the USD/ZAR history with the price action testing the long term resistance level. A break of this trend line will be set the tone for more ZAR weakness to come. Using the Fibonacci extension levels the next target up is 13.75. This is highly. The target will remain in play as long as the price action remains above the 200MA level. 





CLS WEEKLY TIME TO SELL?..

CLS has really had an amazing run since April 2016 but now the chart is very overbought. Looking at the chart there are several bearish signals in play. 
1)  The weekly stochastics are heavily grouped in the sell zone. 
2) When looking at the RSI it is evident that there is a sell divergence in play as the RSI tops are refusing to confirm the new share price high. 
3) The actual price action has formed a classic rising wedge formation which is a bearish formation.
4) The price action has also been moving through an Elliot Wave pattern which is depicted by the numbers on the chart. 

All in all this does look like the time to take profits. The vote of no confidence result will also put a strain on the companies importing costs as the ZAR has already weakened considerably. 







CLS WEEKLY CHART WARNING

CLS has really had an amazing run since April 2016 but now the chart is starting to look very overbought. Looking at the price formation we can see that the weekly candle sticks have been forming a potential rising wedge formation. Adding to this bearish sentiment is the falling RSI tops which are not confirming the new share price high levels. If you are long in this stock keep this in mind a break for the falling wedge support level would be very nasty.


PPC WEEKLY CHART UPDATE

Since the last chart we have seen the price action come to test the weekly 200MA level and bounce off it as a support. When looking at the bigger picture everything is still intact and this one is still looking great. Currently the price action is once again sitting against the resistance level. As with the previous update watch for the confirmed resistance break!! It is also very important to keep in mind the very large gap level still open, which is depicted in the chart

SDASDASD


KIO WEEKLY CHART 


Since February 2016 KIO has gone from one of the worst performers on the JSE to one of the best. The price action has been moving though a relatively narrow ascending channel. However, the picture has taken a turn for multiple reasons. As we can see the ascending channel formation has been broken which is the first bearish sign. The second sing is the break below the all important weekly 200MA. The third bearish sign on the price action is the failure to break above the larger descending resistance level. 

The first target down is shown on the graph at R 112.36. Will only go long again if the price action can break back above the 200MA level. 





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