Taking a look at GFI, we can see a few indications that the price will move up higher.
1. Inverse Head and Shoulder formation - if you take a look on the daily chart there was an inverse H&S that formed in Mid Feb to Mid Apr, the
formation played out and the price broke upward.
There is currently an inverse H&S in play as it just broke through the neckline on 19/6/2020
2. Volume looks to be twice the average daily volume
3. MACD indicator has turned
4. The 10MA is just above the 20MA which indicates short term bullish momentum if it stays above the 20MA
I will go long on this on Monday 22/06/2020 as close to R140.00 as possible my exit would be below the neckline as that may indicate a failed Inverse H&S
Risk would be about 5%
Reward - first target would be a target of 11.5% with an upper target of 21%
17553 seems to be the highest high since 2003 and I do not think the price will cross this resistance level easily
1. Inverse Head and Shoulder formation - if you take a look on the daily chart there was an inverse H&S that formed in Mid Feb to Mid Apr, the
formation played out and the price broke upward.
There is currently an inverse H&S in play as it just broke through the neckline on 19/6/2020
2. Volume looks to be twice the average daily volume
3. MACD indicator has turned
4. The 10MA is just above the 20MA which indicates short term bullish momentum if it stays above the 20MA
I will go long on this on Monday 22/06/2020 as close to R140.00 as possible my exit would be below the neckline as that may indicate a failed Inverse H&S
Risk would be about 5%
Reward - first target would be a target of 11.5% with an upper target of 21%
17553 seems to be the highest high since 2003 and I do not think the price will cross this resistance level easily
Comment:
Take any profit you have made from here as we hit a high of 17432, possibly could go higher but 21% profit is good in my books :) Hope anyone who stuck around for the ride enjoyed it
Second target of 17500 is in sights.