BOTTOM LINE: KIO may correct before resuming its bull trend
(Click image to enlarge)
After encountering resistance at 23,130cps, KIO traded through the support trendline of its medium-term bull trend. With the 3-week RSI bouncing from an oversold position, a near-term recovery is underway; however, failure to recover beyond 19,965cps would be a bearish sign. If that takes place, prepare to go short below 13,300cps, with the downside target situated at 11,100cps.
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.