AECI (AFE), a prominent player in the production of chemicals and explosives, has established a significant presence both within South Africa and internationally. Catering to a diverse range of industries including mining, water treatment, animal health, food and beverages, and the broader industrial sector, AECI has managed to spread its operational footprint...
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.
AECI Limited is a South African chemicals group and is listed on the JSE Securities Exchange.
Re-tested it's previous breakout level and looking to break above short term downward trend line resistance. Elevated volume and strong candle structure could support a move to around the R119 level.
AECI (AFE) is a leading producer of chemicals and explosives in South Africa. It supplies products for the mining industry, water treatment, animal health, food and beverages, and the industrial sector. It has businesses in Australia, North America, Europe, Asia, and Africa. It employs 7600 people in 22 countries. It also has a property division called "Acacia"....
Potential Inverse C&H is forming on AECI.
The price action and momentum looks downwards and it looks like we are going to see some chop before the downside.
Once the handle forms and shows that price doesn't want to break above the handle, we will see panic selling sending the price to the 200 MA.
7 to cross 21
Price to go to 200MA
Target R91.73
ABOUT THE...
AFE has pulled back to TL support (blue) and looks like good area for a long. Price seems to be coiling in a triangle though (yellow TL) so for those who don't want to hold longer term, one could try trade the range. Stop loss on a close below current TL support - 79 - to allow a small buffer.
The stock has been consolidating over several weeks (possibly stage1) .
While it remains above R85 on the daily , I'll be looking for a breakout to the upside through the 200ema to target R98.80 initially.
P:E 7.65
Dividend yield of 6.31%
AFE forming a bullish flat top triangle. R90 is the level it needs to break through with conviction. Still trading above its 50DMA which is also positive. We wait for confirmation.
AFE trading at support at R106,50. If support can hold and a reversal takes place the target can be the dividend gap at R114.
Trade ideas are my own and not financial advice.
AFE reversed of support at R106,50. While trading above support we might see a push to R115 and further.
Trade ideas are my own and not financial advice.
There is a IHS price pattern setup in this stock. A cautioning factor, - a hammer candle and the volumes supporting the breakout are low indicates it could be a "fakeout" so price action has to be closely monitored if initiating a long. Price has previously dropped off sharply after testing the 11100 level. As always manage your risk.
AFE bouncing of horizontal support and its 200dma. While holding above R90 we can see a bounce to R100 and then R105. Keep in mind results will be out soon.
Trade ideas are my own and not financial advice
