BOTTOM LINE: BIL is recovering in its long-term bull channel.
credit: Graph Provided by Sharenet Advanced Online Charts
An upside through 25,500cps could see BIL return to either its major trend-line (dated back to 2005) or the 28,315cps pivotal point. The uptrend would remain intact on firm support retained at 22,575cps, at which point BIL could overcome its major trend-line. In this case, go long above 25,500cps and revise positions when the major trend-line is tested. Otherwise, stay long and increase positions on continued upside, as gains to 30,140cps should then follow.
A negative breakout of the current uptrend would be confirmed below 21,050cps.
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.