Exxaro (EXX): Now in Potential Reversal Zone

The previous idea of Exxaro hit a stop-loss without reaching price objective, the share is now in a reversal zone depicted by the intersection of a falling wedge & a median line of a pitchfork. Ideally we would want to see a daily swing low, followed by a close above the daily 10DMA for a long position. Less risk accepting investors can opt to add closing above the resistance line of the falling wedge as a pre-condition.

Target objective would initially be the upper line of the pitchfork & slightly above the pink sloping resistance.

Stop-loss In bear market capital preservation is important, price going below the swing low in daily time frame would mean stepping aside & wait.

Comment:

EXX has failed the weekly cycle, though we are bullish short-term, we anticipate price to move lower than 13 March, when we reach a turning point it will be time to go short. This idea will be closed and a new bearish thesis posted.

Trade closed manually