BOTTOM LINE: MEI breached the resistance trend-line of its bear trend, and has confirmed a positive breakout above 10,200cps.
MEI is currently encountering resistance at 11,810cps, and with the 3D RSI coming off its overbought position, support retained at 11,150cps would be a bullish sign. We would thus recommend a long above 11,810cps, as we’d expect MEI to advance to 13,245cps in the near term.
A downside through 11,150cps could trigger further selling towards the 10,200cps level, in which case MEI would resume its previous bear trend below 8,180cps.
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.