BOTTOM LINE: SOL has breached the major resistance level of the consolidation phase of its long-term bottoming-up pattern between 50,000cps and 34,655cps.
With the 3D RSI coming off its overbought position, we expect SOL to retrace back to the 50,000cps mark. Support retained above 47,300cps would be a bullish sign - it would present another good buying opportunity through 50,000cps. The ascending phase of the bottoming-up pattern would resume towards 59,300cps at first.
A false break would be confirmed below 47,300cps, and a downside to 44,775cps could then ensue.
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.