Sappi (SAP) took a hit after shock Q2 results yesterday. A late afternoon reversal saw the stock trade 4% off the low, indicating some buyer interest near the R60.00 level. The market has clearly decided to price in poor Final results (Sep 19) in one day so I think a relief rally is most certainly possible.
From a technical perspective, yesterday's late reversal...
SAPPI LTD DAILY Timeframe
Reasons For Entry:
- Ending Diagonal
- RSI Divergence
- Wave 5 Entry
Target is set based on Quasimodo Sell Entry at Supply Zone
Everything Good Yearns Patience And Time
Disclaimer: Trading stocks, commodities, futures and forex has a level of risk and may not be suitable for all investors.
This Page has many charts to show setups and...
SAP has been in a trading range after a Buying Climax (BC) in May 2017. It looks like a Wyckoff Distribution is taking place. There is increased volatility and volume on the declines and low volume on the up moves. The declines has been larger and quicker than any of the declines in the uptrend leading to the BC . Increase volume is seen mostly at the top of the...
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.
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
