JSE:OMU   OLD MUTUAL LIMITED
The stock has come off the boil and returned to the up sloping 200dma

Currently broken down out of a rising wedge pattern.

Support : R11.90 , R11.60

Major Support : R11.00

NB: Upcoming earnings release

"A rising wedge pattern is a technical chart pattern that traders use to identify possible trend reversals in the price of a security. It appears as an upward-sloping price chart featuring two converging trendlines, with pivot highs and lows converging toward a single point known as the apex. When it is accompanied by declining trading volume, it can signal a trend reversal and a continuation of the bear market.

Traders use the rising wedge pattern in various ways to support their trading decisions. Here are some common applications:

Trading Strategy: Traders use the rising wedge pattern as a proxy measure for support and resistance. They look for price bounces from this pattern to identify potential selling opportunities.

Trend Reversals: The rising wedge pattern can help identify potential trend reversals or corrective pullbacks in price. Traders look for divergences between the rising wedge pattern and the price chart to spot potential shifts in market sentiment.

Sell Signals: Traders often use the rising wedge pattern as a signal to sell when the price breaks below the lower trendline. However, it’s important to note that the rising wedge pattern works best in trading ranges rather than trending markets.

It’s worth mentioning that traders often use multiple technical indicators in conjunction with the rising wedge pattern to develop comprehensive trading strategies.


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Disclaimer: All ideas are my opinion and should not be taken as financial advice.
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