$JSESAP - Sappi Ltd: Bullish Outlook Invalidated, Now What?
The market is indeed fickle.
The last update on Sappi on 17.05.2023 maintained the bullish outlook as price held above 3937.
I was surprised by the market reaction to a very poor interim results report and the very gloomy fundamental outlook.
Well, it looks like the market has had second thoughts and corrected itself.
The stock has broken below 3937 thus invalidating the bullish outlook.
The question is, what now?
The bearish technical structure looks complex from the 6348 peak.
From 6348 to 3937, the move is in three waves ABC could be labelled as a higher degree (A) or (W).
The sell-off from 5835 looks to be developing another complex, extended structure which i can only label tentatively for now.
I will maintain a bearish stance below 4595 and update the labels as price unfolds.
The last update on Sappi on 17.05.2023 maintained the bullish outlook as price held above 3937.
I was surprised by the market reaction to a very poor interim results report and the very gloomy fundamental outlook.
Well, it looks like the market has had second thoughts and corrected itself.
The stock has broken below 3937 thus invalidating the bullish outlook.
The question is, what now?
The bearish technical structure looks complex from the 6348 peak.
From 6348 to 3937, the move is in three waves ABC could be labelled as a higher degree (A) or (W).
The sell-off from 5835 looks to be developing another complex, extended structure which i can only label tentatively for now.
I will maintain a bearish stance below 4595 and update the labels as price unfolds.
