Looking at SAP here and price is breaking higher above this ascending triangle. A long pos can be initiated when price closes >4800. Tread carefully when taking long positions as the LT trend is currently down and priceis just below the EMA200 onthe weekly chart. As always manage your risk
Sappi breaks out of a 6 month downward channel and has retested and supported the R45.00 level
reward to risk 2:1
*Disclaimer* - ideas shared in the above is for educational purposes only and IS NOT trading or financial advice.
Long term levels matter. In this case, 3700c was key for Sappi, which, if you extended your lookback period, was a long term buy zone. On 12 September, I published a client report titled: "Technical Insights & Perspectives: 25 Key Charts". In fact, the report was public as I posted it to my Twitter and LinkedIn account on that same Sunday afternoon.
The thesis...
We give a quick recap of markets overnight and the previous day and insights into the day ahead with a few trade ideas on the day. Ideas are strictly NOT INVESTMENT ADVICE.
Upside price momentum supports the bullish trend direction.
A price action above 3800 favour the bullish trend.
RSI leaves enough room for further upside price potential.
The black arrows indicate a potential repetitive price action.
MACD bullish crossover is also applicable.
After the initial break of the 4260 level, SAPPI is back at a point of interest, the 50% upper median parallel of the pitchfork since the March 2020 lows. Just below, we have the the 50MDA & 200MDA. I would like to see this holds for bullish conviction, but there are lower support levels for possible entries, the 38.2% retrace (3913) and 50% retrace (3449)....
The stock found some support at the 50 day EMA. If the stock can break the R45.23 resistance would confirm the double bottom. I will raise my stop loss around R40.40.
SAPPI is currently holding the 38.2% retracement off the highs as resistance. Looking for a break of 4260 to go long, or a drop back to 3721, (or 3495). Target 5100
I Am in the red down almost 3% with this stock. Still holding. Sappi been hit by Civil unrest in South Africa, more specifically Kwa zulu Natal. Might be a double bottom on daily chart, which could see the price go to about 52.00 should it play out. Will play the waiting game.
Closed above previous resistances, lets retrace after this fact and collect liquidity below for a nice move.
Unless we are holding here already for continuation.
We formed a possible Head & shoulders here . a Daily close below R 40 might be the trigger here for Possible R35 1TP and R32 as a 2nd TP. be mind full that should this fail to break and a break of last week's high this will mitigate the idea and stay with the current range.
