BOTTOM LINE: SAP has breached the support trend-line of a steeper up-trend, formed within its major bull trend.
After encountering resistance twice at 10,545cps, a double-top pattern would be confirmed below at 7,945cps. With the 3-week RSI bearish, SAP may correct within its primary bull trend to the 6,560cps support mark, and the next target would be at 5,750cps, so go short below 7,945cps.
SAP would have to trade above 9,350cps to resume its previous up-trend. However, a substantial buy signal would only be triggered above 10,545cps, with the upside target situated at 12,100cps.
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.