BOTTOM LINE: EOH tested the support trendline of its long-term bull trend
EOH tumbled after encountering major resistance at 18,000cps in October last year. Now trading a few points away from the support trend-line of its long-term bull trend, we expect EOH to bounce there as it has done before.
A positive breakout of its current bear trend would be confirmed above 12,400cps – however, the 3-week RSI would have to simultaneously escape its own bear trend to substantiate the breakout on the price chart. Thereafter, gains to 14,865cps should follow in the near to short-term.
The major support trendline would be breached through the 9,600cps level. A negative breakout would be confirmed below 9,000cps, so in that case, go short. Support at 7,375cps could be rapidly tested.
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.