BOTTOM LINE: RDF has confirmed a positive breakout of its long-term bear channel.
In our last commentary in February, we recommended a long above 1,130cps, and we remain bullish. Positions could be increased above 1,210cps, and the short-term upside target remains at 1,565cps.
Because the 3W RSI is trading in a symmetrical triangle, watch stop-losses if the RSI should trade through the lower slope. RDF would resume its bear channel on downside through 1,060cps, and a sell-off to either the 965cps level or the lower slope of the channel could then ensue. A sell signal would be triggered below 1,060cps.
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.