NPN

Speculative Trade Idea: The share may trade lower before continuing it's short term advance, hence a buy at current levels or preferably better. Key Drivers: (1) The share has, in the form of falling channel, retraced to the mean (mid-point) of it's rising 2 standard deviation 21-day linear regression trend channel. This retracement also coincides with the 50-61.8% Fibonacci retracement zone. (2) On Friday (07-July) and Monday (10 July) 'doji' and 'hammer' candle formations were developed, respectively, suggesting a slowdown of ultra short term downward momentum (3) The share trades just below the monthly and quarterly pivot, of which a break and close above may fuel further accumulation by momentum traders. The stop-loss is a daily close below 313000c. The target is 5% above the entry however, to protect capital traders should ensure that a trailing stop loss is utilized (move you stop-loss higher as the price increases) and/or bank/take profit in increments as the share approaches the target. Event risk today is the US CPI print which may give rise to further volatility while corporate action (not currently present) should also be born in mind. Time Stop: Wednesday, 12 September 2023

TRADING LEVELS:

Entry: 322036
Target: 338137
Stop-loss: 313000

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