BOTTOM LINE: NPN has broken out of its corrective bear channel.
(Click image to enlarge)
After retaining firm support at 285,500cps, NPN formed rising bottoms and has now breached the upper slope of its channel. A positive breakout would be confirmed above 336,500cps, but with the 3W RSI in mega-overbought territory, a near-term pullback is pending.
If NPN should hold above 304,000cps - thus forming the forth rising bottom - a break through 336,500cps could ensue again, with potential upside back to the 414,300cps all-time high.
NPN would resume its bear channel below 304,000cps, and key support at 285,500cps could be breached.
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.
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