Pretoria Portland Cement Ltd: Positive Breakout

1 September 2017 | Moxima Gama
 


BOTTOM LINE: PPC is teetering on the resistance trendline of its medium-term bear trend

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Possible scenario:

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. 

Alternative scenario:

PPC would resume its bear trend through 455cps, and below 400cps, it would retest its prior low at 345cps.

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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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