Scanned a couple of stocks on the JSE and it was tough to find many decent setups although Aspen is one that stood out for me on the LONG side.
3 reasons I think this setup is constructive and likely goes higher to at least R200
(1) Weekly price action has been making consecutive higher lows since bottoming out in August 2019. (showing relative strength in comparison to the market which has been moving lower. (2) We are trading above both the 200 week moving average as well as the yearly Pivot. (3) Divergency on RSI where RSI shows higher lows even though price made an equal low on the last move down.
I think one can buy this at current levels (approx R146.00), using a stop loss as a weekly close below 132 and a target of approximately R200. From a risk standpoint that's a risk of R14 for a target of potentially R54 which is quite decent.
Let's see how we go over the next couple of weeks
Comment
⋅
Been slow to move but level still holding here
Comment
⋅
looks like we could potentially start breaking resistance here