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TECHNICAL ANALYSIS: Telkom stocks prepare for buying opportunity

Jun 27 2019 17:27
Colin Abrams

Telkom is one of the leading stocks on the JSE at the moment (and has been this entire year). Right now it’s giving a short-term pullback to set up another buying opportunity. 

Telkom (TKG) – A buyable pullback

Recommendation: BUY

Current Trend: Up on all main timeframes.

Strategy: Buy from R90 or lower.

Chart Setup: Telkom has given a short-term breakdown from a symmetrical triangle (lines 2 and 3). This will lead to another good buying opportunity lower, closer to its 50-day moving average and line 1 support.

  • Its Stochastic is not quite oversold yet, so the price can still drift down for a couple more days.  

(Daily chart)

Chart sharpened

Strategy Details: Buy it at the R99.00 level or lower. (Line 1 support is at the R87.80 level). 

Target: After this pullback look for a short-term rally to R103 to take trading profits. Over the medium-term (three to six months) it can go quite a lot higher than that, e.g. to R130.

Stop-loss: A close below line 1 support (R87.80). Once it closes above R99.00, tighten the stop a lot e.g. to a close below R98.80.  

  • 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.

telkom  |  equities  |  markets
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