After touching a low of R156 in January 2016, the stock is up by a whopping 791%!! (current price : R1390) The last time the RSI reached these levels of 90 on the monthly chart back in Jun - August 2017, we saw the stock retrace almost R500 in 3 months!! While i am not suggesting that history repeats itself, i am merely advising caution at chasing Anglo Plats as the stock is getting extremely overbought and it is within touching distance of the previous all time highs which was tagged in May 2018 (R1438.63). Momentum is on it's side, but as we saw in 2007, when the stock eventually corrects, they are usually quite quick & aggressive, and you don't want to get caught on the wrong side of that!
This has to be the biggest short of the decade. I went short at R1 400 my exit target is below R1 000.
MarcoOlevano
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@cmaepa, It has worked out well.. monthly chart topping tails shows the sellers are very aggressive close to R1400.. should go lower
cmaepa
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@MarcoOlevano, Thanks for the update, still holding till it drops below R1 000.
cmaepa
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@cmaepa, Trading Gods are smilling upon me managed to close my position at R200 made R1 200 gain per share due to AMS flash crash this morning.
Victor_Baloyi
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Would the global economic recession be the reason for the 2008 aggressive correction. all things being equal, we are not in a similar predicament now. can be safely say that the short term correction we are witnessing might be short lived?