Sappi is in process of completing the 4th Elliot wave and expected to bounce of 2728 before commencing with the final upward wave estimated to consolidate at the 4074 to 4163 price level. Wave 3 was met with resistance, which served previously as support on 27 September, 14 & 15 November 2019. The 4074 level was fierce resistance during the period 16 October to 5 December 2019 and it can also be expected to serve as again as resistance at the point of completion of the 5th wave.
Currently the 20, 30 and 50 day MA are bullishly aligned, with the 30 day MA serving currently as support.
Definitely one to keep an eye on.
Disclaimer: My analysis should not be construed as financial advise. Share trading is risky and unpredictable at best. I'm just sharing what I see.
It broke the bottom trendline today, where it going next?
StarChaser74
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@stoompot, yep doesn't look good after yesterday's unexpected sell off. We will have to see what it does today. Respect your stop loss if it breaks down further. My stop loss is set at 2500.
stoompot
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@StarChaser74, check out International Paper Co and see how similar it is to SAP. Ive found it interesting. It recently went up and SAP seems to follow the pattern
StarChaser74
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@stoompot, yes it looks like it, but it seems that IPC were slightly ahead of Sappi, setting the upwards trend till around 29 April when, if it's price is converted to ZAR for specific dates, it traded at multiples of between 24.6 to 31 to Sappi's price. From 29 May it's USD price seems more synchronized with SAP. However, from 8 May IPC's Rand converted price multiples drop to between 19 and 23.7 times the price for Sappi. The drop in multiples can be contributed to a stronger Rand.
StarChaser74
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@stoompot, the orange is the Rand to USD movement and blue IPC