SANLAM LTD set for a mini drop & a probable rise afterwards.
JSE:SLM has been trading sideways between R43.96 and R73.20 from March 2020 after tumbing from its all-time highs of R98.49 in early March 2018. Price just retested the resistance band around R73.20 and has been having a bearish reception since Monday the 18th of December 2023, however price had managed to close last week Friday strongly bullish at R74.31. This could be an indication that the bulls believe SANLAM LTD has to be priced higher.
Looking at the fact that the retest of the resistance band was corrective with a rising wedge, price is forecasted to drop to the 'zone' between R61.50 and R62.10 to see if the bulls still want the stock to climb higher and rebalance price action from the last week of March 2018.
A bullish daily candle close around this zone will be a good sign to go long on the stock and ride the probable +40% gain in price to R89.94. Higher targets to lookout for beyond this rebalance are the all-time high of R98.49 and R116.80.
Bullish sentiments will be off the table when the stock starts to trade and hold well below R60.50.
Looking at the fact that the retest of the resistance band was corrective with a rising wedge, price is forecasted to drop to the 'zone' between R61.50 and R62.10 to see if the bulls still want the stock to climb higher and rebalance price action from the last week of March 2018.
A bullish daily candle close around this zone will be a good sign to go long on the stock and ride the probable +40% gain in price to R89.94. Higher targets to lookout for beyond this rebalance are the all-time high of R98.49 and R116.80.
Bullish sentiments will be off the table when the stock starts to trade and hold well below R60.50.