JSE:SLM seems to be heading up from the lows it reached at the end of October. The stochastic, MACD and exponential moving averages are all confirming this move on our trend-following momentum strategy.
With Friday's upward move, JSE:SLM has convincingly broken through a descending trendline that it has been obeying for quite some time. If it continues upward, I will consider a long position all the way up to the previous resistance level around the 7000 price range. The stochastic, MACD and EMA's are all confirming this upward momentum.
JSE:SLM is looking decent for a potential long position if it breaks through the downward trendline that it has been forming since July. Keep an eye on this to see if it breaks and confirms above to signal a long position.
Sanlam has spent the last couple of weeks consolidating in the form of a bearish rising wedge formation. The move higher off the lows has appeared on lower volume which gives bulls little confidence in this move. Should we manage to see a convincing close below the rising wedge at +- R56.00, this rising wedge could play out with a downside target of R41.50. What...
Should SLM trade into the 5800 to 6050 region an form a reversal would set up a good short opportunity.
Entry - 5800 to 6050
Stop Loss - 6231
Targets - 5250 and 4800
Sanlam | From a long term portfolio perspective, the share price of Sanlam appears lacklustre while also being motivated by a few technical indicators. A review of the monthly chart sees the price trading at the same level it did 6 years ago, for the most part being supported by it’s 50-month moving average (MA). This MA has been tested on numerous occasions...
