Reinet Investments Ltd: Forming A Bullish Pattern

26 October 2017 | Moxima Gama
 


BOTTOM LINE: REI is consolidating within its uptrend

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Possible scenario:

Currently constructing the final shoulder of its inverted head-and-shoulders pattern, and with the 3-week RSI turning bullish, REI could be headed to the neckline of its bullish reversal pattern (red bold slope). A positive breakout of the pattern would be confirmed above 3,310cps. Such a move would end a one-year consolidation, with potential upside to the 4,050cps target.

Alternative scenario:

A negative breakout through its second support trendline (blue dashed trendline) would be confirmed below 2,530cps, and downside to either the blue bold trendline or the 1,775cps support level could then follow.

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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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