BOTTOM LINE: NPN is forming falling tops in its major bull trend
credit: Graph Provided by Sharenet Advanced Online Charts
Currently testing a significant support trend-line dated back to December 2016, NPN may bounce there and recover towards 361,500cps.
However, if the 3-week RSI should remain bearish, even after a potential recovery on the price chart, we would expect NPN to reverse below 361,500cps and resume its near-term bear trend through the 285,500cps support level. In this case, go short or increase shorts. The correction would persist to either the blue bold trend-line, or the 246,500cps level.
NPN would have to trade above 361,500cps to negate the falling-tops formation - only then would we anticipate gains back to 414,300cps.
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.