- Price is back at an area of resistance
- Bulls will need to keep up them momentum to break through is important level and possibly target the 200ma
- Im favouring the short side unless bulls can close above R13.50
JSE:OMU
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Disclaimer: All ideas are my opinion and should not be taken as financial advice.
OMU's range has been contracting week by week since the 30th of April. It has now broken this range to the upside giving as indication of higher prices to come in the following weeks.
Old Mutual has been trading within a defined channel since March this year. The channel has got an upward trajectory. A long position can be attempted at the bottom of the channel 1200 for a top of channel 1500 target. A break below 1200 should trigger a stop loss. Some volatility has moved back into markets, so take care with any new long positions.
Old Mutual broke the uptrend channel today after a pretty dismal trading statement yesterday. We might be going down to test previous lower levels 980, 930
The chart structure of OMU reminds me of the recent price action in IPL where a channel continuation and downward trend line break saw the price make string gaiins. Yesterday we saw OMU close with a strong candle as it open below the EMA-20 and closed above the EMA-10. To the upside we have a 'gap' that potentially closes. (1) we may see a day or two of further...
I have been waiting for the markdown to start in Old Mutual (See posts below) for a while. However, price has been testing the 2000 level but has been unable to break it. With a significant bar with some volume the last two days the new year might finally bring the markdown.
