BOTTOM LINE: KIO could resume its previous bull trend
KIO is a few points away from the 23,130cps major resistance level. With the 3-week RSI slightly overbought, KIO may encounter resistance there once again, but if support is retained above 17,935cps, that major level would be breached. Failing this, KIO could trade through 23,130cps irrespective of the RSI – which would then remain overbought for an extended period.
A neutral long could be initiated above that level, with increments at every resistance level breakout, and the upside target would be at 28,500cps.
A reversal through 17,935cps could see KIO retest the 13,900cps key support mark. It should bounce there, or else support at 11,200cps could be retested.
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.