We may derive the following from the Weekly EXX chart:
1. Overall, price is still in an uptrend.
2. We have a channel with strong resistance and a double top.
3. Price i.m.o should first drop lower to the support of the channel.
4. Wait for price to reach the trend support - for now, we remain bullish (trend is your friend).
5. As always - maintain your...
The price has come down steadily to test the rising trend support at around 126.00. However, there a small horizontal support at 124.00 that is a stronger buy. The stock is extremely over-sold at current levels but it does leave the door open for price capitulation. The play here is to wait for a green candle and then buy for a relief rally.
Exxaro has be in a strong upward stride. In the recent move from the oversold line there has been two stepping stone re-accumulations. The current re-accumulation is about to be broken which would continue the move to the overbought line.
