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TECHNICAL ANALYSIS: Sappi offering an opportunity for traders

Aug 02 2018 17:59
Colin Abrams

Sappi [JSE:SAP] has broken out of a short-term consolidation pattern and has a higher target, thereby offering an opportunity for traders.

Sappi (SAP) – Higher target

Recommendation: Traders buy

Current Trend: Short- and  med-term up. Long-term sideways.

Strategy: Buy at current levels or better for a short-term rally.

(Daily) 

Chart Setup: Sappi has broken out of a neat symmetrical triangle (lines 1 and 2). It’s generally working its way higher to long-term resistance, which is line 3 at R101.70.

  • Its short-term Stochastic can still move higher
sappi

Strategy Details: Buy it at current levels or better. (It was at R93.70 at the time of writing).

Target: Minimum target to R100 i.e. the height of the triangle projected up. Take most profits there. Take the rest closer to R101.70 (line 3) if reached. (Note, that is also a target from a large rounding bottom pattern which has taken place this year so far, not shown).

Stop-loss: A close below R90.00. From R97.00 raise the stop to breakeven (entry) and from R98 raise it again to a breaking of its prior two-day low, to protect profits.

  • 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.

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sappi  |  equities  |  markets
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