BOTTOM LINE: VOD traded through the lower slope of its long-term bull channel
After retaining support at 13,500cps, VOD recovered some of its losses – even returning to its bull channel and trading through our buying level at 15,770cps. Such a move should prompt a 100% retracement to the 18,700cps prior high in the near to short-term, or the upper slope of the channel. Since the 3-day RSI is mega-overbought, however, we recommend investors refrain from going long until the RSI corrects and recovers.
A downside through the blue bold trend-line could trigger a sell-off to towards the 13,500cps key mark. A negative breakout of the long-term bull channel would be confirmed through that level, so in that case, go short. A downside to the 11,145cps support level could then follow.
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.