JSE:SLM Everything says don't do it. The trend is exceptionally strong with this one. But if you have a penchant for masochism, note that:
- Momentum has slowed in recent days. not faded, but slowed.
- RSI @77 is ready for some normalization
- MACD has slowed and started abating somewhat.
Technically it looks like it's stalling in a nicely defined supply...
Preferred sell at 6055c or higher. As per this morning's note, the share is trading with high bullish momentum however approaching an overbought range. For short term traders, this sets up a countertrend sell opportunity. Live price at time of writing: 6009c. Time stop: 28 July 2023.
TRADING LEVELS:
Entry: 6055
Target: 5532
Stop-loss: 6374
Falling Wedge formed since 1 Feb 2023.
Only yesterday, we had the confirmed breakout showing strong buying and demand.
Price>200 Bullish
RSI >50
Target R63.69
SMC
Below the Wedge we have Sell Side Liquidity Order block. Where Smart money is buying where retail were selling. This gives a strong signal that high buying volume was trumping selling.
Very bullish...
The last coverage of Sanlam was on 2023.01.04 and the wave count was suggestive that a bottom was potentially in at 4686, link below.
Sanlam had a strong, impulsive looking rally from 4686 to 6076.
The correction to 5021 is a clear three wave move labelled as a double zigzag (wxy).
Long positions can be opened at current prices with an aggressive stop-loss below...
OMU likely to outperform SLM?
A price action below 4.9240 supports the idea that SLM is likely to underperform OMU.
Increase the short exposure for a break below 4.8725,
The target price is set at 4.6680.
The stop-loss price is set at 5.1285 (upper range of the linear regression channel pattern.
Notice how the linear regression channel pattern is sloping downwards...
The chart is the 4-hourly chart.
A price action above 5400 supports a bullish trend direction.
Increase long exposure for a break above 5600.
Target is set at 5700, which is the middle of the Bollinger Bands.
Stop-loss at 5400 and will negate the bullish bias as well.
The stock recently started rebounding from oversold territory (see the lower panel).
The share is...
From the April 2022 peak at R73,20 Sanlam stock corrected strongly to what appears to be a potential bottom at R46,86.
The decline unfolded in five waves and bullish MACD/price convergence with a MACD trigger signal increases confidence that a reversal is imminent if it has not already began.
I highly recommend a stop-loss below R46,86.
A short was triggered on JSE:SLM this morning and it has already moved quite nicely in our favour. Let's hope this momentum continues all the way to our take profit level.
The rising wedge is a reversal pattern that can be used in trading. In this chart there is a bigger correction & the rising wedge is forming. I expect the price to break down sharply to the bottom.
We are also looking at zero crossover to confirm the medium term sell
Good luck!
Sanlam is in what looks like a 3-3-5 Elliott Wave Correction. It has formed a Head and Shoulders pattern, but yet to break the neckline. We can see a drop to 2000 region should the neckline break.
