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TECHNICAL ANALYSIS: Krugerrand at an all-time high

Aug 06 2019 17:37
Colin Abrams

With the stock market currently in turmoil, the one area that has been doing extremely well is gold (and gold shares). A chart of the Krugerrand is presented that shows numerous upside targets, together with an important upside breakout currently taking place.

Krugerrand

Investment Strategy: HOLD/BUY IF NOT IN

Long-Term Trend: UP 

(Monthly)

Krugerrand

Overall Comment: The Krugerrand is currently breaking out above line 3, which (interestingly) confirms a ‘cup and handle’ pattern from 2016. This is a bullish chart pattern. It is making a new all time high as well. 

• We have had targets of 22 600 and 25 000 for some time. But the cup and handle is now pointing to a further target of R27 730 over time. (Note, that assumes it closes above line 3, 21 000 this month).

• Its monthly Stochastic has entered its overbought region, so there will be pullbacks long the way.

• But the Krugerrand is very much still a hold, and should be bought if not in. 

• Closest support is line 4 at 19 640 for September. But any weakness will be buyable. 

  • Colin Abrams is an independent technical analyst. To subscribe to more recommendations by the author, or attend trading courses, please go to www.themarket.co.za

Disclaimer: Fin24 cannot be held liable for any investment decisions made based on the advice given by independent financial service providers. Under the ECT Act and to the fullest extent possible under the applicable law, Fin24 disclaims all responsibility or liability for any damages whatsoever resulting from the use of this site in any manner.

equities  |  krugerrand
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