JSE:SAP Breaking flat bottom triangle. Target around 6200 where gap is still open.
JSE:SAP formed a bearish engulfing candle pattern yesterday which could signal a reversal. This seems to be whats happening at the moment. For the lat couple of months it has been making lower lows quit regularly. If the price breaks through the latest lower low from the 16th of Jan, I will consider entering a short position.
Sappi momentum indicators flagging trend weakness. Stock price crosses major support R 75.50 / R 76.00...price set test the R 62.00 / R 60.00 levels over the medium term.
Double top forming on the weekly. Need to wait for Friday's candle to see if the R73.50 support line holds. Should that fail, it then triggers a short and we could potentially see the R45 region being tested in the weeks to follow.
JSE:SAP is bouncing off of a long term support level at the moment having formed two doji candles which generally signify a loss of momentum. The stochastic has also turned up which could mean a reversal. If it continues up tomorrow, I will consider entering a long position.
Interesting observation on Sappi (SAP.JSE). The bottom of the range coincides (almost) with the 200 day moving average. Becomes a STRONG buy at R80.00. buying here makes it easy to place your stop loss as a breach of the 200 day moving average would signal a bearish break lower. Take profit level is the top of the sideways channel.
Will allocate off these levels - Bias to the downside here - Price has broken yellow trend-line
Sappi (SAP) chart from Lester Davids, Unum Capital Trading Desk analyst. Daily Chart: Now at resistance and looking slightly stretch. Weekly: Building an Inverse H&S