In July of this year, however, the stock found good momentum, reaching a high of R500.37. It has since come off this high and is now offering traders a good entry point. Take a look at the above chart.
Firstly, note how Amplats is reacting to its 50-day . It appears to be finding support at this level, which is a good indication that it could return to momentum.
In addition, looking at the Slow , JSE:AMS is somewhat oversold at these levels. For this reason I expect the share to turn to the upside.
Looking at the chart, I can't help but have a view on Amplats and for this reason I will be going long on this stock.
Action: Place a Limit order to BUY at R460 with Stop Loss set at R425. I will aim to take profit at R495 and R520 respectively.
Adjust SL to R475 to lock in a gain of 25.08%!
Adjust SL to R480 to lock in a gain of 33.44%!