Nampak Ltd: Could Soon End Its Long-Term Bear Trend

25 May 2017 | Moxima Gama
 


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BOTTOM LINE: NPK is consolidating and could confirm a positive breakout soon

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Possible scenario:

NPK is currently trading sideways between 1,965cps and 1,555cps. It has breached the resistance trendline of its long-term bear trend, and a positive breakout - which should prompt upside to the next resistance at 2,260cps - would be confirmed above 1,965cps. So increase your positions above 2,260cps as wed then expect NPK to test our first target at 2,525cps.

Alternative scenario:

NPK could encounter major resistance at 1,965cps and prolong its sideways pattern. It would resume its previous bear trend below 1,555cps - so in that case, go short. The next support would be at 980cps.

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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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