BOTTOM LINE: GRT is testing the upper slope of its medium-term bull channel
In our commentary in October last year, we had recommended a long above 2,610cps, as GRT would overcome major resistance above that level. As expected, the breakout prompted gains to the upper slope of the channel.
Because the RSI is not overbought yet, we anticipate further gains to our target at 3,100cps, so stay long above that level as a positive breakout of the bull channel would be confirmed, potentially forming a steeper uptrend to the 3,650cps secondary target.
Close positions if GRT struggles to breach the upper slope of its channel, because a downside through 2,780cps could trigger a sell-off to 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.