I hate to be the bearer of bad news but if we close below R169.00 on a closing basis I think African Rainbow could well trade much lower to a target of approximately R136.00. Not only is it currently losing a very important level of uptrend support but the R169.00 level has been an important pivot of resistance and support previously. Although the Head & Shoulder...
African Rainbow Minerals has been moving nicely in the downtrend.
It was only a few points away from the take profit, before the price turned up.
It's safe to move the stop loss above the trend line now as this will signal a change in trend to the upside.
This way, we can look for longs if the break occurs.
I don't know if such a pattern exists but I call it a Reverse Cup & Handle.
This is where the Handle (small rounding top) is on the left side of the cup (Big rounding top).
Now that the price has broken below, we can expect supply side to bring the price down.
21>7>200 - Bearish
RSI<50
Target R219.52
ABOUT ARI
African Rainbow Minerals (ARM) is a South...
JSE:ARI is showing all of the signs for a possible short position based on our momentum strategy. If it continues downward, the trade will be triggered and we will be looking at a target around the 250 level.
African Rainbow minerals is carving out another bullish flag formation which should see it reach two technical targets of R280.00 and R310.00, once it breaks out above the flag.
Cup and Handle has formed very nicely on the weekly chart.
We've also had a strong breakout, confirming from the open of the candle.
The moving averages are bullish 7 > 21 >200
RSI >50 - higher lows
Bullish
Target 1 - R340.00
Here's some information about the company to those who are international:
African Rainbow Minerals (JSE:ARI) is a diversified South...
JSE:ARI is showing some good downward momentum based on the stochastic and MACD and the EMAs which are about to cross downwards. I will wait until we get absolute confirmation from the EMAs before entering, but if it breaks lower than the low of today's candle so far, we should see a cross.
JSE:ARI is showing some good downward momentum with the recent downward crossing of the 3 and 15 period EMA's as well as the crossing downward of the stochastic and the MACD. If this momentum continues, we could see a possible downward move towards the support level at around 24000.
