BOTTOM LINE: DSY is consolidating and could positively break out
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DSY is trading in a symmetrical triangle. Although the 3-day RSI is bearish, it’s forming rising bottoms and may break out of current bearishness. A positive breakout of the triangle would be confirmed above 13,620cps, so go long above that level if the RSI has abandoned its bear trend. The upside target would be at 15,580cps.
A negative breakout would be confirmed below 12,715cps, and downside to the support trendline would then ensue.
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.