BOTTOM LINE: REM has breached the upper slope of its bear channel
A positive breakout was confirmed through 23,325cps, and since the 3-day RSI has come off its overbought position, investors could go long above that level.
Revise positions if the blue dashed trend-line curbs further gains, otherwise stay long and increase positions above 27,040cps as gains to the 28,445cps all-time high should then follow.
Refrain from going long on a reversal below 22,615cps, as REM would resume its bear channel and possibly capitulate to either the 21,060cps level or the lower slope.
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.