Sanlam SLM (Last Close 6206c) - Considering The Potential For An Ultra Short Term Bullish (Buy/Long) Reversal. Pre-Market View.
Last week Tuesday (pre-market) the provisional sell range was 6820-6860c. The share traded into the mid-point of this zone (on the same day) with a print of 6840c and as at yesterday's close, declined by 9.2% or -634c.
Yesterday's session saw the share close lower by 2.76% and is approaching it's short term incline trend line support. The 7-day RSI is 30 (weak, but 'near oversold') and the 7-period 4-hour RSI is 16 ('oversold'). Also noted is the share trading at 2.5x it's 20-day linear regression channel.
Potential Scenario For Today: The share opens lower and crosses below the trend line, then attempts to reclaim it (either via a 'doji' developing today with follow-through tomorrow or a long lower wick). This is approximately in line with the swing lows of 19 May however could also trade as low as the swing lows of 13 May (see green shaded area). This is approximately in the range of 6055-6130c (Please note: We could also overshoot this range and failure to hold this range with deteriorating price action will temporarily invalidate the idea).
The yellow arrow represents a potential price path however is not guaranteed to play out in this manner.
An alternative scenario would be the price opening higher today thus traders could wait until the provisional level is reached for the idea to be triggered.
Last week Tuesday (pre-market) the provisional sell range was 6820-6860c. The share traded into the mid-point of this zone (on the same day) with a print of 6840c and as at yesterday's close, declined by 9.2% or -634c.
Yesterday's session saw the share close lower by 2.76% and is approaching it's short term incline trend line support. The 7-day RSI is 30 (weak, but 'near oversold') and the 7-period 4-hour RSI is 16 ('oversold'). Also noted is the share trading at 2.5x it's 20-day linear regression channel.
Potential Scenario For Today: The share opens lower and crosses below the trend line, then attempts to reclaim it (either via a 'doji' developing today with follow-through tomorrow or a long lower wick). This is approximately in line with the swing lows of 19 May however could also trade as low as the swing lows of 13 May (see green shaded area). This is approximately in the range of 6055-6130c (Please note: We could also overshoot this range and failure to hold this range with deteriorating price action will temporarily invalidate the idea).
The yellow arrow represents a potential price path however is not guaranteed to play out in this manner.
An alternative scenario would be the price opening higher today thus traders could wait until the provisional level is reached for the idea to be triggered.