MarcoOlevano

$ASR Assore Ltd looking technically constructive. (Bullish)

Long
JSE:ASR   None
Assore Ltd was in a solid downtrend for the best part of the 2nd half of 2019, dropping from a high of just over R400 down to a low of R215. However, towards the end of 2019 we saw the stock break the downtrend line ( DTL ) and start to trade above the 50 dma (blue line) which was the first clue that the stock was turning the corner. During December, the stock then broke its previous swing high horizontal resistance level at approximately R262 before encountering some closing price resistance at approximately R272. In addition, the last few pullbacks on the stock have been supported by higher swing lows (UTL), which further adds to my conviction that the trend has changed on this counter. Today, the 14th Jan 2020, we are starting to see the stock clear this resistance level , and should the stock convincingly close above R272 by EOD , it looks like we have the all clear for the stock to now trade higher and tag the major resistance level at R310-R314 where we will encounter both the 50% fib retracement of the entire period, as well as the 200 day moving average (green line).


Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.