Murray & Roberts (MUR) at Confluence of Support
Murray & Roberts has been in severe downtrend but is now approaching a purple patch (rectangle). In the box is a confluence of support where 4 lines intersect. A weekly swing low from these levels could bring a flurry of buyers chasing the share. How to play the potential:
1. If risk accepting one can open a 50% position at current level (R-2.50-2.70)
2. Deploy balance in 2 tranches at R2.20 & R1.90 or when a visible turn is hammered
3. Hold the share with first target for taking profit being at cross of the dotted pink trendline
4. Ideally this affords taking out initial capital 2x & leave the balance for long-term holding
The share can still drop another 30-40% into Feb/March 2023 so know what you are in for. Weak hands are best to buy at Monthly swing low confirmation as the share is shedding those right now, no use playing jump in, jump out. The levels where price has reached allow for smaller amounts of capital deployment with potential large gains so no need to be greedy with gigantic proportion of capital.
1. If risk accepting one can open a 50% position at current level (R-2.50-2.70)
2. Deploy balance in 2 tranches at R2.20 & R1.90 or when a visible turn is hammered
3. Hold the share with first target for taking profit being at cross of the dotted pink trendline
4. Ideally this affords taking out initial capital 2x & leave the balance for long-term holding
The share can still drop another 30-40% into Feb/March 2023 so know what you are in for. Weak hands are best to buy at Monthly swing low confirmation as the share is shedding those right now, no use playing jump in, jump out. The levels where price has reached allow for smaller amounts of capital deployment with potential large gains so no need to be greedy with gigantic proportion of capital.