The technical setup and trading action for Aspen Pharmacare is signaling that it is willing to make further price advances. Yesterday, we received additional confirmation of this as the share traded in the low R140s before closing the session at 146.20 (+1.18%). The R139 to R141 level has been a fairly strong support zone while the share is also currently making another attempt to regain it's 50-day moving (MA). This MA is starting to stabilize on the downside, signaling a slowdown of the bearish momentum and a potential for a medium bullish move. We also note the formation of a bull flag pattern - where the share is currently breaking to the upside. On an intraday basis we may see the price make small pullbacks toward the 144/143 level however traders should monitor these zones to determine whether there is strong buying support. In addition, the short term 20-day moving average is also being challenged which could add to the short and medium term bull case. On the upside, the targets are R152 and R157 (top of bull flag) while R163 could be reached should the aforementioned levels be eclipsed. On the downside, a stop-loss of R137.70 must be applied. Preferred accumulation levels: R144.30/144.80.
APN
APN