BOTTOM LINE: NPN has failed to breach the upper slope of its major bull channel again
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NPN is correcting once again, after recently testing the upper slope of its long-term bull channel. It may hold above 244,205cps and recover its losses as the 3-week RSI attempts to remain bullish by the end of the week.
However, if the recovery loses steam below 284,650cps, prepare to go short on downside through 255,360cps. Losses could deepen further to either the lower slope of the channel, or the 203,000cps support mark.
Strong support retained at 244,205cps - together with the RSI prolonging its bull trend - would be a positive sign. In this case, NPN may exceed its all-time high at 284,650cps and even trade through the upper slope of its channel, to commence a steeper bull trend towards 350,000cps.
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.