Publications
Partners
Standard Bank (Stanbank) is the leader of the banking stocks at the moment. Its price chart shows it building up for a new upside breakout.
STANBANK (SBK) – Higher target
Recommendation: BUY
Current Trend: Short-term sideways. Med-term up.
Strategy: Buy on either a minor pullback e.g. to R188, and/or on a breakout.
Chart Setup: Stanbank has a higher target from an inverse head and shoulders (labelled S-H-S). It is currently in a broadening formation (lines 2 and 3), and is likely to break out to the upside.
- Its short-term Stochastic is overbought so a minor (and temporary) pullback is possible.
(Daily chart)
Strategy Details: Buy either a minor pullback
e.g. to R188, or buy a close above line 3 (above R198.00). Do whichever happens
first.
Target: Both chart patterns are
pointing to the same target at R217, based on the size of the patterns.
Stop-loss: A close below line 1 i.e.
R179.50 if buying on a pullback. For buying the breakout, it’s a close below
R185.50.
- 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.
