M Formation has formed on PPC since November 2023.
This is a very risky trade analysis due to the high volatile nature of the share.
But if the uptrend holds strong and lower highs continue, we could see a very big fall with the cement company.
Medium Probability Trade
Price<20 and Price <200MA
Target R2.37
M Formation has recently formed on PPC.
We are seeing negative signs more than positive.
On Tuesday, the price crossed below the 200MA which confirmed downside to come.
Now we can expect a test and a consolidation period before further downside, but well need the price to cross and close below the 200MA first.
Target R2.37
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...
A price action below 360 supports a bearish trend direction.
Increase short exposure for a break below 340.
The target price is set at 310 (its 61.8% Fibonacci retracement level).
the stop-loss price is set at 380.00
The M-top pattern might hint as some temporary weakness in the share price.
Remains a risky trade.
PPC hit our initial target at R3.50.
It then confirmed a breach above the neckline from the larger cup and handle formed since March 2023...
Now there is a slight consolidation before the upside to continue.
We see the moving averages are perfectly aligned where 7>21>200
And the RSI>50 and making higher lows.
New target will be at R4.40
PPC is a leading manufacturer and supplier of cement, aggregates, ready-mix, lime, limestone, and fly-ash in Africa. It has eleven cement factories in South Africa, Botswana, the DRC, Zimbabwe, Rwanda, and Ethiopia with a total production capacity of 11,5 million tons. It produces aggregates at its Mooiplaas quarry in Gauteng which is the largest aggregates...
THe first Cup and Handle formed and the target was set to R3.55.
Last week it hit it and in the pipeline another LARGER Cup and Handle formed.
With the Moving averages all looking up 7>21>200 and with RSI making higher lows.
The next target will be set to R4.40
Very bullish for PPC
Ppc broke out of the small channel which indicates that bulls on ppc might be back... do not forgot about the brics summit that has taken place this year in August..... they were discussing improvements in infrastructure and so on so ppc investors might be back!!!
PPC is a leading manufacturer and supplier of cement, aggregates, ready-mix, lime, limestone, and fly-ash in Africa. It has eleven cement factories in South Africa, Botswana, the DRC, Zimbabwe, Rwanda, and Ethiopia with a total production capacity of 11,5 million tons. It produces aggregates at its Mooiplaas quarry in Gauteng which is the largest aggregates...
Cup and handle formed on PPC from our last update.
The price broke above and went up very nicely.
The chances of it going up are still higher but we need to be warned with the JSE ALSI 40 choosing a direction down...
7>21>200
RSI>50
Target remains at R3.55
Cup and handle has formed on PPC, where the price has retraced back to test the brim level.
The volatility is wild with this Penny Stock and the liquidity is also very low.
These are dangerous stocks to try buy and sell and wider stops and take profits are essential.
Also with MAs, they are in the twilight zone too as 7=21=200
RSI>50
Target R3.55
WARNING
The last coverage of PPC was on 2022.12.01 link below.
The bigger picture outlook is still the same.
The bounce from 186 to 355 has been in three waves so there is still potential for further downside.
In the short-term, the key level to watch is 209 as a break below it could price below 186 for wave ((z)) of 2.
If 209 holds and price pushes towards 355, that will...
W Formation formed previously as you saw.
And the signs were all bullish with MAs and RSI
But then there was a consolidation period forming a Diamond Formation, breaking down.
I guess, my bias is in a way changing to down - but I'm not convinced.
Even with the bank collapse, resource crash and crypto exchange debacle - PPC is holding quite solidly.
I will keep...
W Formation is still in effect with PPC.
7>21 - Bullish
Price > 200MA Bullish
RSI>50 >70- Bullish
Target R4.29
This is a patience game now.
Here's some facts about the company
PPC Limited was founded in 1892 as De Eerste Cement Fabrieken Beperkt and is headquartered in Johannesburg, South Africa.
PPC is the acronym for Pretoria Portland Cement, which is...
PPC is trading back above its 1 year moving average and has broken up out of a IHS pattern.
any pullback into R2.60-R2.70 is a good buying price for a possible move back to R3.50
W Formation has formed on Daily with a striking up candle breaking above the neckline.
With MAs we have 7>21 - Bullish
Price > 200MA Bullish
RSI>50 >70- Bullish
Target R4.29
Concerns:
The 7>21 is still below the 200MA which signals the downtrend is still in place.
