Kumba Iron Ore Ltd: Caution, A Correction Is Underway

12 May 2017 | Moxima Gama
 


BOTTOM LINE: KIO may correct before resuming its bull trend

(Click image to enlarge)

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Possible scenario:

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.

Alternative scenario:

KIO would return to its bull trend above 19,965cps. A good buying opportunity - that should see KIO retest the 28,500cps resistance mark - would be triggered above 23,130cps.

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Moxima

Moxima Gama
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.

Read an interview with Moxima, or discover Moxima’s trading insights via Sharenet’s Technical Analysis Newsletter.


Disclaimer:
The information contained in this article is for informational purposes only and must not be regarded as a prospectus for any security, financial product or transaction. It is neither to be construed as financial advice nor to be regarded as a definitive analysis of any financial issue. Investors should consider this research/article as only a single factor in making their investment decision. We recommend you consult a financial planner/advisor to take into account your particular investment objectives, financial situation and individual needs. The views and opinions (where expressed) in this article are those of the author and do not necessarily reflect the official policy or position of Sharenet.

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