JSE:MND's share price struggled in the final quarter to 2018. In September, it created a high of R424.37 and then spent the next three months heading south. It eventually made a low way down at R285.20. It has since bounced back a bit. But the question to ask: Is this a change of trend or just a natural correction?
Let's turn to the chart for answers.
The first thing to note is the "top" of the current bullish run. If you look at the area circled above, you'll see the upwards push ran out of steam as soon as it got to the 200-day EMA. Suddenly the stock began to look a lot more bearish with three red candles in a row.
Furthermore, as JSE:MND was pushing up, a bearish divergence began to form on the Slow Stochastic indicator. This a common leading indicator when it comes to predicting future trend changes.
I believe the upwards push JSE:MND experienced in January is about to come to an end. And I would say it's time to go short.
Action: Place a Limit order to SELL at R330.00 with a Stop Loss set at R355.00. I will aim to take profit at R300.00 and R280.00 respectively.
Margin: 10%
Gearing: 10.00x
Gain: +151.52%
Risk: -75.76%
Let's turn to the chart for answers.
The first thing to note is the "top" of the current bullish run. If you look at the area circled above, you'll see the upwards push ran out of steam as soon as it got to the 200-day EMA. Suddenly the stock began to look a lot more bearish with three red candles in a row.
Furthermore, as JSE:MND was pushing up, a bearish divergence began to form on the Slow Stochastic indicator. This a common leading indicator when it comes to predicting future trend changes.
I believe the upwards push JSE:MND experienced in January is about to come to an end. And I would say it's time to go short.
Action: Place a Limit order to SELL at R330.00 with a Stop Loss set at R355.00. I will aim to take profit at R300.00 and R280.00 respectively.
Margin: 10%
Gearing: 10.00x
Gain: +151.52%
Risk: -75.76%