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)
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
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