BOTTOM LINE: SOL has been range bound between 50,000cps and 35,400cps since January 2015
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Currently, SOL is mega-oversold, and we anticipate a bullish reversal soon. However, failure to recover above 41,990cps or trade through the resistance trendline of the bear trend (formed within the huge range band), could compromise key support at 35,400cps.
If so, we would recommend an aggressive short below that level, as SOL would have defied support maintained since January 2015. The first target would be at 30,050cps.
A positive breakout of the current bear trend would be confirmed above 43,630cps, so in this instance, go long - the upside target would be at 50,000cps.
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.