BOTTOM LINE: KIO has broken out of its long-term bear trend
(Click image to enlarge)
We had recommended a long position in November last year, and KIO confirmed a positive breakout of its inverted head and shoulders pattern above 13,300cps. After testing our first target at 17,710cps, we suggested investors close positions because the 3-week RSI was overbought - and then go long on a recovery.
Close positions on a reversal below 15,260cps. Downside to - and possibly through - 13,300cps could ensue.
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.