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TECHNICAL ANALYSIS: Sibanye stock breaks out of bullish pattern

Aug 14 2019 07:44
Colin Abrams

Mining stock Sibanye has a significantly higher target having broken out of a large, bullish chart pattern, as shown on its chart below.

SIBANYE (SGL) – Higher targets  

Recommendation: HOLD/BUY IF NOT YET IN

Current Trend: Up on all main timeframes.

Strategy: It remains an ongoing hold; buy if not in, and add to it on any pullback. 

Chart Setup: Updating Sibanye’s chart, it’s progressing very well, having broken out above its neckline of a massive inverse head and shoulders pattern.

  • Its weekly Stochastic is in its overbought zone, so there could be a temporary pullback soon, but all weakness is to be bought.
sibanye

Strategy Details: Hold. Buy some now if not in, and add to it on a pullback e.g. to R19 or lower, if it pulls back.  

Target: Its short-term target is R26.85 based on its recent correction (March – May). But its main target shows ongoing potential to R48 over the med-term+ . This is based on the height of its large inverse head and shoulders, projected up.  

Stop-loss: Medium-term stop a weekly (i.e. Friday) close below R15.50. 

  • 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.

sibanye  |  equities  |  markets
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