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Johannesburg - The JSE’s all-share index has been vacillating between 31 200 and 32 500 since the beginning of May.
The curent consolidation and the uncertainty are warning technical investors that an upward or downward break through the band could lead to a good run or a decline of 3% or so.
The stock market is currently unattractive to medium- to long-term investors, but the volatility creates wonderful trading opportunities for speculators.
Richemont Securities [JSE:RCH]
Judging from the daily share price graph of Richemont, a favourite with investors, the share price is currently nudging a resistance level.
The negative signal being sent by the resistance level will disappear only when the share price consolidates above R46.50.
Keep in mind that the share has enjoyed a great 21% run over the past three months.
Should the share price draw away from the resistance level and decline, speculators can use the opportunity to take profits, providing it does not consolidate above R46.50 in the next week.
If the share price falls back, medium- and long-term investors should become concerned only at the R42.50 level.
Remgro [JSE:REM]
A symmetrical triangular formation is developing on the Remgro share price’s daily graph. Such formations have a tendency to break through in any direction.
Should the share price break upwards above R113.40, that would be a technical buy signal, allowing the share to rise to R117. A decline to below R107.30 could precede a fall to R103 and R100, creating ideal buying opportunities for the medium- to long-term investor.
- Sake24.com
For business news in Afrikaans, go to www.sake24.com.
The curent consolidation and the uncertainty are warning technical investors that an upward or downward break through the band could lead to a good run or a decline of 3% or so.
The stock market is currently unattractive to medium- to long-term investors, but the volatility creates wonderful trading opportunities for speculators.
Richemont Securities [JSE:RCH]
Judging from the daily share price graph of Richemont, a favourite with investors, the share price is currently nudging a resistance level.
The negative signal being sent by the resistance level will disappear only when the share price consolidates above R46.50.
Keep in mind that the share has enjoyed a great 21% run over the past three months.
Should the share price draw away from the resistance level and decline, speculators can use the opportunity to take profits, providing it does not consolidate above R46.50 in the next week.
If the share price falls back, medium- and long-term investors should become concerned only at the R42.50 level.
Remgro [JSE:REM]
A symmetrical triangular formation is developing on the Remgro share price’s daily graph. Such formations have a tendency to break through in any direction.
Should the share price break upwards above R113.40, that would be a technical buy signal, allowing the share to rise to R117. A decline to below R107.30 could precede a fall to R103 and R100, creating ideal buying opportunities for the medium- to long-term investor.
- Sake24.com
For business news in Afrikaans, go to www.sake24.com.
