BOTTOM LINE: SHP has surpassed its all-time high
(Click image to enlarge)
SHP has remained bullish after breaching the upper slope of its medium-term bear channel and confirming a positive breakout above 19,295cps. It’s currently encountering resistance at 21,450cps, and has surpassed its all-time high at 21,180cps.
The 3-week RSI is trading in a symmetrical triangle, which means volatility may persist until a breakout in either direction occurs. If the RSI remains bullish, a move above 21,450cps would be possible - so increase long positions above that level. Our target remains at 25,500cps.
Close long positions on downside through 19,295cps; a downside to 18,175cps could follow. The 16,685cps level would be tested if selling persists.
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.