BOTTOM LINE: SAP has confirmed an ascending triangle breakout
SAP has maintained its uptrend since breaching the horizontal slope of its ascending triangle above 7,700cps, as well as the 7,945cps major resistance level. Further gains through 9,350cps could see SAP rapidly test our target at 9,625cps. The 3-week RSI is currently overbought and may trigger a near-term pull-back.
If support holds firmly at 7,945cps the current uptrend would remain intact, and we recommend investors stay long.
A negative breakout of the bull trend would be confirmed below 7,435cps. Alarm bells should sound below 7,945cps, so close positions as a downside to 5,775cps could then follow.
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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.