BOTTOM LINE: BAT has breached the resistance trend-line of its long-term bear trend.
If support is retained at 3,410cps, and the 3-week RSI remains bullish, a positive breakout would be confirmed above 4,500cps - a move that could advance the share price to 5,785cps at first. In that case, increase positions above that level on continued buying, and resistance at 7,200cps would be retested.
The bear trend could be resumed on the downside through key support at 3,410cps. Below 2,490cps, the 1,660cps prior low would be targeted.
Technical Analyst, Sharenet
Moxima has a B.Comm Finance from the University of South Africa and is a certified Chartered Market Technician Level 2, currently completing Level 3. She has been a technical analyst for 10 years, working for BJM, Noah Financial Innovation and for Standard Bank as part of the Research Team in the Treasury Division of CIB. She now runs her own business, The Money Hub, and consults for Sharenet. Moxima has been rated as one of the top 5 technical analysts in South Africa and outperformed the market during the recent recession. She regularly makes an appearance as a guest on CNBC Africa and writes often for Finweek and Sharenet’s Views.