Firstrand is starting to look tired here having reversed off the first big resistance level (R69-R70) as well as trend line connecting the stocks all-time high from MAR 18.
My biggest concern is that the rally from the lows in August has taken place on declining volume which doesn't give me a great deal of confidence in this rally. Secondly we are starting to see divergence develop on the RSI (price making new highs but indicator making new lows) which could be indicating a further correction in price.
We have reversed off the first massive horizontal resistance now at R69-R70, but also keep an eye on the secondary resistance level between R71-R72. Should the stock continue to roll over, important support levels on the downside to keep an eye on are R64.75 (200dma), R62, R60 and R55.
My biggest concern is that the rally from the lows in August has taken place on declining volume which doesn't give me a great deal of confidence in this rally. Secondly we are starting to see divergence develop on the RSI (price making new highs but indicator making new lows) which could be indicating a further correction in price.
We have reversed off the first massive horizontal resistance now at R69-R70, but also keep an eye on the secondary resistance level between R71-R72. Should the stock continue to roll over, important support levels on the downside to keep an eye on are R64.75 (200dma), R62, R60 and R55.
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