BOTTOM LINE: HAR has breached the resistance trend-line of its short-term bear trend
Because resistance was encountered at 3,550cps, a positive breakout of the bear trend was confirmed above that level. However, the 3-day RSI is currently overbought and could trigger a near-term reversal.
Support held firmly at 3,300cps or above 3,015cps should see HAR reclaim its losses through our buying level at 3,550cps once again. So, increase positions above 3,955cps, and an upside to 4,575cps could then follow. Watch stop losses carefully with this trade because HAR is highly correlated to the Gold spot and can therefore be very volatile.
The bear trend would extend below 3,015cps, potentially retesting support at 2,585cps.
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.