BOTTOM LINE: PPC is teetering on the resistance trendline of its medium-term bear trend
After dipping to 345cps, PPC has regained sharp upside and may confirm a positive breakout of its bear trend at a close above 525cps. In this case, go long.
The 3-day RSI is currently correcting from a mega-overbought position, and support retained above 455cps would be bullish. Once a positive breakout is confirmed, gains to 625cps could follow.
PPC would resume its bear trend through 455cps, and below 400cps, it would retest its prior low at 345cps.
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.