BidCorp overbought, set to breathe down to R360 after dividends.
JSE:BID met resistance at R358 in Nov 2019 which was momentaliry broken to R361 in Feb 2022 and the break failed to sustain, however creating a higher swing low. This effectively painted an ascending triangle on the Weekly Chart, indication long term bullish sentiment.
Resistance of this ascending triangle was strongly broken in January 2023 and price rallied to R446.
Looking at the current price action, price rallied and painted a mini rising wedge, Which was broken sideways in the form of a double top. With a juicy dividend payment set for 04 October 2023, and the Ex-date being 27th September 2023 the share price gapped to the upside and broke the double top's resistance, bringing the instrument into short term overbought conditions.
With a market gap between R428 and R431, the instrument will need to maintain R431 as support, which is highly unlikely after the dividend payout.
Taking into account that the instrument is far above the 50 Week EMA, the rising wedge which was painted and the double top which was violated with a gap, all these are ingredients for the "Bears Power Juice" to take price lower for a breather. The Bears will be woken up if price slips under R431 and the rising wedge's lows at R372 will be the first target for a retest of the Bulls' power and a bounce to the upside. The broken resistance around R360 will be the 2nd and last target.
Overall sentiment is STRONGLY bullish over the long term, however those sentiments will be taken off the table if the Bulls are still sleeping beyond R358.
Resistance of this ascending triangle was strongly broken in January 2023 and price rallied to R446.
Looking at the current price action, price rallied and painted a mini rising wedge, Which was broken sideways in the form of a double top. With a juicy dividend payment set for 04 October 2023, and the Ex-date being 27th September 2023 the share price gapped to the upside and broke the double top's resistance, bringing the instrument into short term overbought conditions.
With a market gap between R428 and R431, the instrument will need to maintain R431 as support, which is highly unlikely after the dividend payout.
Taking into account that the instrument is far above the 50 Week EMA, the rising wedge which was painted and the double top which was violated with a gap, all these are ingredients for the "Bears Power Juice" to take price lower for a breather. The Bears will be woken up if price slips under R431 and the rising wedge's lows at R372 will be the first target for a retest of the Bulls' power and a bounce to the upside. The broken resistance around R360 will be the 2nd and last target.
Overall sentiment is STRONGLY bullish over the long term, however those sentiments will be taken off the table if the Bulls are still sleeping beyond R358.