These Penny type stocks are very difficult to analyse technically.
There is little volume, high volatility and almost no liquidity.
You can see this by jumping candlesticks between ranges (bids and offers).
So we can deduct a few things but with less certainty than with Blue Chips.
1. Downtrend broken
2. Price ready to break above 200MA - Bullish trend
3....
Rectangle formation has completed with Merafe.
There has been a strong bullish sense with the stock, where the price action has shot above the pattern and is showing upside and demand to come.
We are seeing other signs as well with optimism.
Price>20
Price>200
Target 1 will be at R1.72
Since the price broke above the brim level for PPC, it's since formed a DIamond FOrmation.
There are TWO scenarios we can see:
A bullish Diamond broadening formation. It resembles a diamond with high volatility and jumpiness between the price range. We wait for the diamond to form and then wait for the breakout to the upside.
A bearish Diamond broadening...
Two formations occured with TCP.
The first one was a W Formation which broke above the neckline and headed to the target 1 of R6.88.
The second, was yet another W Formation which the price broke above the neckline. And it was considered in the HIgh Probability trading range as the price was above both 20MA and 200MA for the first time in a long time.
SInce...
This has been a long winded analysis.
We sent out this one on 22 Dec 2023, which gave a Conservative entry from the Dimaond Breakdown.
And now the momentum is picking up to the downside.
We also have an Reverse Inv Cup and Handle which is rare but also effective.
The Nature is still High probability as the Price is below BOTH 20MA and 200MA.
Target...
Bearish Diamond formation is potentially forming on JSE Top 40.
We've seen bearish tendencies for the market with momentum downside.
Price<20 and Price<200 - HPT
We DO need this price to break below the Diamond before the likelhood is higher for big downside.
But knowing indices, they always tend to suprise and the market makes a big rally.
ANyway, the...
Not my favourite market to trade due to the high volatile nature.
But the analysis has shown, upside is likely to come.
The price is above both 20/200SMA and it's formed a Cup and Handle pattern.
Conservative traders might wait for the retrace and bounce before getting it.
Aggressive traders would already be in it.
BUt the target for Santam will be...
Sun International has been a roller coaster of a ride.
Been swinging between R38.00 and R42,50.
Well, lately we've seen higher lows, and the price keeps touching the top.
It's like hitting thin ice. Eventually it'll break up and out.
So, let's see what it does.
UPDATE:
Over the past year, the most notable insider purchase was made by CEO & Executive...
We see a W Formation, with the price moving and completing the right Double Bottom.
Once we get a breakout to the upside, we could see major upside to R11.25.
Right now and it's a wait and see but the fundamentals look good.
UPDATE:
On February 16, 2024, the company announced an expected 45% increase in revenue for the six months ending December 31, 2023.
...
We see Merafe has definitely entered into a Rectangle formation.
Price is remaining above the 200MA where it could range between the high and low.
We definitely need a breakout to the upside, before we see upside. The target potential will be at R1.61 if the price breaks above the Rectangle.
Now I wouldn't be that positive and optimistic with this analysis,...
Transaction Capital has been the come back duck since October.
It's reached the first target of R6.88 in December. It then moved in a consolidation sideways pattern that formed a W Pattern.
Since it broke above the neckline, the momentum has been on fire.
This is just an update that the price is on its way to the next target at R11.53.
UPDATE:
Transaction...
Harmony is one of the laggards with Gold.
While it is moving in a sideways consolidation range, we are waiting for a confirmed breakout.
Once it breaks above, we will definitely get long and hold with a strong Risk to Reward.
But right now patience is important, cause it could also fall South quickly.
In fact, if you draw a Rectangle formation instead of...
We sent out this update in July 2023, where a Vuvuzela (Broadening Formation) formed.
INstead of waiting for a breakout, we were playing with the pattern's range instead.
Since it bounced off the Support level it's been on the way to R4.75.
And you can see the price almost touched it, before retracing back to the uptrend line.
So have we been getting it...
SInce the price broke below the Inv C&H, it's been moving first sideways and then it succomb.
The price is below 20MA and still above 200MA.
We expected the price to head to 200MA which it did.
Then broke below and to the next support it goes to R86.51.
Yep, the JSE ALSI 40 is in yet another Twilight Zone.
We see sideways motion, prior downtrend and there are sideways indicators.
The bearish bias part of it is that price is below 200MA.
The RSI is showing lower highs (Bearish divergence).
We also see low volume on the buying side.
More importantly, we have a flat monday with no conviction...
And if the...
The JSE ALSI 40 continues to move in some form of Symmetrical Triangle.
And it's been doing so since September 2023.
Right now the price is below the 200MA which does indicate a BEAR market. However, when you see the 200MA, it's been moving sideways, which does not give the indicator it's reliable signal for a trending motion.
And with the price near the...
TECHNICALS
Symmetrical Triangle has formed on the daily since I would say 10 August 2023.
There are good technical signs that a breakout to the upside is imminent.
First we have a long term upward range from 2020 which the price continues to bounce off the uptrend.
Second we have a trending 200MA which the price still needs to break above as it's been in...
Symmetrical Triangle seems to have formed on Sappi.
Now on the contrary of a Symmetrical Triangle being a Continuation pattern, it is possible for a reversal to take place in this instance.
We have the converging of the trendlines where the price has reached an apex. Strong buy divergences and price action to the up.
It's a bit premature to BUY just yet but...
