Kumba Iron Ore has been moving in this consolidation flag range since January 2023...
The price has indeed been making lower highs and lower lows.
But which way is it going to break, I believe depends on the Resources index.
As things look with the JSE ALSI, the downtrend is strong and more evident (despite this blip up).
But regardless we have different...
Cup and Handle previously formed on KIO.
It then moved into a sideways pattern, making a rectangle (Box).
Now we need the price to break out of it, before a decent trade lines up.
7=21>200 - Bullish
RSI>50 - Bullish
Target R686.33
Cup and Handle has formed aver the last year.
Price broke above the brim level but then moved sideways. During the time it was making higher lows which is bullish by nature, but we haven't had the push we need.
Hence, the price is retesting the Brim which is forming a conservative entry for breakout traders.
7>21>200 - Bullish
RSI>50 - Bullish
Target R686.33
We recently shared a chart of JSE:KIO , then KIO was at the support level. JSE:KIO is currently below the support level, and there's above average selling volume. The stock might go lower.
