Coronation Fund Managers LTD to rally or face "demotion"?
After a shock rally from lows of R4.15 in early 2009 to highs of R115.20 going into 2015, Coronation has been on a downtrend that formed a large falling wedge. both bearish and bullish legs within the wedge have been lasting 2 years on average, with the latest bearish leg starting early 2022 before getting intercepted by a sideway trend just 9 months later towards end of September 2022.
Price has been on this sideway trend around the 76.40% Fib retracement level of the 2009-2015 rally. Since April 2023 it has been locked within R28.60 and R33.40. On the daily chart, we can see a double bottom structure that has been now followed with what seems to be developing into a bullish flag. This could be a signal that the 76.40% level is holding as strong support and some buyers are becoming interested in the stock.
Conservative Investors may need to wait patiently to see buyers take price above R33.40 before jumping in to hold on to the stock for dear life (HODL) as the stock may in the long term reach for targerts resting at R57.00, R86.80, R115.20, R184.00, and R295.00. Risk entries can be initiated as the stock closes bullishly above R31.50, making use of a stop loss below R28.60 as a bearish outlook on the stock will be on the table.
The stock is trading thinly just below the 50 Week EMA. The Weekly RSI is above the smoothing average and has formed a bullish pennant, more confluence to support our current bullish outlook.
Price has been on this sideway trend around the 76.40% Fib retracement level of the 2009-2015 rally. Since April 2023 it has been locked within R28.60 and R33.40. On the daily chart, we can see a double bottom structure that has been now followed with what seems to be developing into a bullish flag. This could be a signal that the 76.40% level is holding as strong support and some buyers are becoming interested in the stock.
Conservative Investors may need to wait patiently to see buyers take price above R33.40 before jumping in to hold on to the stock for dear life (HODL) as the stock may in the long term reach for targerts resting at R57.00, R86.80, R115.20, R184.00, and R295.00. Risk entries can be initiated as the stock closes bullishly above R31.50, making use of a stop loss below R28.60 as a bearish outlook on the stock will be on the table.
The stock is trading thinly just below the 50 Week EMA. The Weekly RSI is above the smoothing average and has formed a bullish pennant, more confluence to support our current bullish outlook.